Bharti Airtel has reportedly entered into a definitive agreement to acquire 100% equity interest in Tigo Rwanda Ltd.
It was reported that the acquisition will consolidate the Rwandan telecom market and will position Airtel as a strong number two operator in Rwanda.
Sunil Bharti Mittal, Chairman, Bharti Airtel said in a statement, “Airtel has taken proactive steps in Africa to consolidate and realign the market structure in the last few remaining countries where its operations are lagging on account of lower market share and presence of too many operators. Airtel and Tigo have already merged their operations to create a strong viable entity in Ghana. Today, it has taken yet another important step to acquire Tigo Rwanda to become a profitable and a strong challenger in a two-player market”.
The argument is subject to regulatory and statutory approvals.
The statement reads, “The consideration for the transaction is based on approximately 6x EBITDA multiple, payable over two years. The agreement is subject to regulatory and statutory approvals”.
It was learned that Airtel at present operates in 15 African countries apart from India and South Asia.
Reports say that Airtel is one of the largest telecom service providers across the continent in terms of geographical reach.