Bharti Airtel has received nearly 100% shareholder approval for its proposed transaction to consolidate its holding in Airtel Africa Plc, paving the way for the telecom operator to increase its ownership in one of its most important overseas businesses.
Almost 100% of shareholders voted in favour of the transaction, which will see Bharti Airtel issue equity shares to Indian Continent Investment Ltd. (ICIL), a promoter group entity, on a preferential basis in exchange for ICIL’s 16.31% stake in Airtel Africa, the company said in an exchange filing.
According to the company, the strong backing from shareholders, including public and institutional investors, reflects confidence in the strategic merits of the transaction and its potential to create long-term value.
The proposed deal is structured as a cashless share swap, allowing Bharti Airtel to acquire a sizeable stake in Airtel Africa without taking on additional debt or making any cash payment. The company said the transaction would increase its economic interest in a business that it considers a key growth platform while also simplifying the group’s shareholding structure.
Bharti Airtel said the move would improve transparency and strengthen capital efficiency, while also reinforcing the governance framework under which the company operates.
“Airtel Africa is central to our growth strategy and is well positioned to deliver robust performance with an increasing contribution to our consolidated revenues. The company has always operated at the highest standards of corporate governance and financial discipline, and this overwhelming support reinforces the confidence that the investors have in the organization,” Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises, said in a statement.
Mittal said the structure of the transaction would allow the company to pursue growth while preserving financial flexibility.
“Structured as a share swap, India's largest ever transaction preserves capital strength for Airtel’s core operations and future growth ambitions. As we look ahead, we see significant potential in Africa for long-term shareholder value creation,” he said.
The transaction remains subject to the receipt of all required regulatory approvals before it can be completed. Once the deal is consummated, Bharti Airtel’s effective holding in Airtel Africa is expected to rise to about 79%.
The company described the move as part of its long-term and calibrated strategy to steadily increase ownership in Airtel Africa, which it views as a strategic growth engine for the group.
Airtel Africa operates across multiple African markets and has become an increasingly important contributor to the group’s overall business.
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