Airtel Is Offering Four African Units To A French Firm For $1b

BHARTI Airtel is in exclusive talks to sell four of its African subsidiaries to France’s Orange SA which may earn the world’s third-largest telecommunications firm around $1 billion (Rs 6,400 crore).
Airtel, which has operations in 17 African countries including Nigeria, is looking to sell its operations in Burkina Faso, Chad, Congo Brazzaville and Sierra Leone, all Francophone countries.
With operations in 29 countries, it reported a total customer base of 247 million worldwide by March 31, 2015, including 188 million mobile customers and 16 million fixed broadband customers. The firm currently has 29.5 million subscribers in Nigeria and about 17.6 million Internet users.
According to ETTelecom.com, an online telecommunications platform, said the Indian telecommunications firm has been making losses since its entry in 2010, which has been dragging the carrier’s consolidated financials.
But sources close to the deal in India, according to online platform, said Airtel is looking for a valuation between $900 million and $1 billion for the sale.
The four countries in question are said to be roughly contributing about $650 million to $660 million to Airtel Africa’s top line of $4.71 billion as of Marchend.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the four countries was close to $180 million in the period under review.
Source: The Guardian

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