Tag: Airtel Africa Plc

Airtel Africa announces interim dividend currency exchanges rates

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Airtel Africa, a leading provider of telecommunications and mobile money services, has announced new interim dividend currency exchange rates for its shareholders. The firm also confirmed the default currency and options on currency election for the interim dividend

According to a statement signed by the Group Company Secretary for Airtel Africa, Simon O’Hara, and filed with the Nigerian Exchange Limited (NGX), the new interim dividend currency exchange rates are put at 1 US dollar= N414.55 and 1 US dollar=£0.7373.

The telecommunications giant also revealed that shareholders that hold their shares on the London Stock Exchange may elect to receive their entire dividend payment in GB Pounds of US dollars.

In addition, the teleco giant added that: ‘’ Holders electing to receive a dividend should specify a choice of currency by completing the Currency Election Form and returning this to Computershare Investor Services plc.

‘’Shareholders holding their shares on the LSE who do not indicate their currency of choice before 26 November 2021 will receive their dividends in U.S. dollars.

‘’The closing date for the dividend currency election to the Company’s Registrars Computershare Investor Services plc in the UK is 26 November 2021.’’

In addition, Airtel Africa revealed that shareholders that hold their shares on the Nigerian Exchange Limited (NGX), may either elect to receive their entire dividend payment in Nigerian naira or U.S. dollars. It warned that partial elections are not permissible.

Commenting further on Nigerian shareholders, the firm stated that: ‘’Holders electing to receive a dividend in U.S. dollars should complete the Currency Election Form and return this to Coronation Registrars Limited or email to [email protected]

Shareholders holding their shares on NGX who do not indicate their currency of choice before 26 November 2021 will receive their dividends in Nigerian naira.

The closing date for currency election as regards shareholders who hold their shares via the NGX is 26th of November, 2021.

Recall that Airtel Africa recently posted a 131% increase in its bottom line for the half year period ended 30th of September, 2021 to stand at $335 million. The top line figure of the firm also surged by 25% to close at $2.27 billion. Based on this, the Board recommended an interim dividend of 2 cents per ordinary share payable on 10th of December 2021 to shareholders on the register as at close of business on 12th of November, 2021.

Airtel Africa secures approval to launch a payment service bank in Nigeria.

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Just like its major rival in the Nigerian market, Airtel Africa Plc has announced that it has obtained an approval-in-principle to launch its payment service arm in Nigeria, known as SMARTCASH Payment Service Bank Limited.

According to a statement signed by the Group’s Secretary, Simon O’Hara and filed with the Nigerian Exchange Limited (NGX), the final approval is subject to the firm satisfying certain standard conditions within six months.

Excerpts of the recent press statement issued by the telecommunications giant reads: ‘’Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today announces that its subsidiary SMARTCASH Payment Service Bank Limited (“Smartcash”) has been granted approval in principle to operate a payment service bank business in Nigeria.

‘’Final approval is subject to the Group satisfying certain standard conditions within six months.’’

Similarly, recall that MTN Nigeria had announced that it obtained an approval-in-principle from the Central Bank of Nigeria (CBN) to launch its proposed MoMo Payment Service Bank.

It is expected that the entrance of these two major telecommunications companies into the Nigerian financial services landscape will help heighten competition and drive a more inclusive financial system, offering options for a wide range of financial services to both the unbanked, under-banked and banked population in Nigeria.

Commenting on the recent development, the CEO of Airtel Africa Plc, Segun Ogunsanya, said: ‘’I am very pleased that Smartcash has been granted an approval in principle to operate a service bank business in Nigeria. We will now work closely with the Central Bank to meet all its conditions to receive the operating licence and commence operations. The final operating licence will enable us to expand our digital financial products and reach the millions of Nigerians that do not have access to traditional financial services. I am looking forward to working closely with the Government, the Central Bank and traditional financial institutions to expand financial inclusion and meet the evolving needs of our customers and the economy.“

Recall that Airtel Africa recently announced that it is exploring potential IPO for its mobile money business in less than 4 years. The firm made the disclosure during its recently concluded investors’ presentation for its half year result ending September 2021.

Airtel Africa announces first closing of tower sale transaction in Madagascar.

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Airtel Africa, a leading telecommunications company with presence in 14 countries across the African continent, has announced the first closing of the transaction to sell its telecommunications tower company in Madagascar to Helios Tower Plc.

According to a statement signed by the Group Company Secretary, Simon O’Hara, and made available on the website of the Nigerian Exchange Limited (NGX), Airtel Africa will receive about $51.7 million for the deal.

It is imperative to note that until the completion of the transactions, Airtel Africa will continue to develop, maintain and operate their equipment in the towers under a separate lease agreements with Helios Towers (the purchaser). The lease agreement will be separate from the sale agreement and payments will be made in local currencies by Airtel’s operating entities in the jurisdiction

In addition, the teleco giant noted that the net proceeds from the deal will be used to reduce the Group’s external debt and to invest in its network and sales infrastructure in the host country (Madagascar).

What you should know:

  • Earlier in March this year, Airtel Africa Africa had announced the signing of an agreement with Helios Towers Plc to sell its tower companies in Madagascar and Malawi. The teleco giant owned about 1,229 towers in these two markets and they form a critical part of the company’s infrastructure network. The towers as at the period of the announcement were valued at $93.7 million.
  • In addition, the teleco giant also announced that it has entered into an exclusive Memorandum of Understanding (MoU) for the potential sale of its 1,000 tower assets in Chad and Gabon. The deal is expected to be executed in similar style with the sale of the Madagascar and Malawi tower assets. It is also expected to be finalized by 2022.
  • Helios Towers Plc is a leading telecommunications infrastructure company in Africa with major presence in markets like South Africa, Ghana, Senegal and others.

 

 

Airtel Africa Plc announces payment of interim dividend to its shareholders

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Airtel Africa Plc has announced that the board of the company has approved the payment of 2 cents as interim dividend to its shareholders.

This was disclosed in a notice filed with the Exchange, today, and signed by the company’s secretary, Simon O’Hara.

The notice stated that the interim dividend will be paid in U.S. dollars, although shareholders have the option to decide whether to receive their dividend payments in GB pounds or Nigerian naira via currency elections.

It further stated that details with regards to the options on currency elections and the currency exchange rates which will be applicable to the HY’ 2021/2022 interim dividend payment to shareholders that qualify for and have elected to receive the payment in GB Pounds or Nigerian Naira, will be issued in due course.

The dividend is scheduled to be paid on or around the 10th of December, 2021. The Ex-dividend date and Record date are scheduled for November 11th and 12th, respectively.

Recall that the company recently released its financial result for the quarter ended September 30, 2021, revealing revenue of $1.16 billion during the period. In addition, Operating profit and Post-tax profit stood at $380 million and $192 million, respectively.

Airtel Africa Plc reports net profit of $192 million in the quarter ended September 30,2021

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Airtel Africa Plc released its unaudited financial results for the quarter ended 30th of September, 2021.

  • Revenue for the period was $1.16 billion. (+20.21% YoY)
  • Expenses totalled $599 million. (+12.38% YoY)
  • An operating profit of $380 million was recorded. (+45.04% YoY)
  • Capital expenditure totalled $139 million. (-6.71% YoY)
  • Operating free cash flow of $425 million (+48.08% YoY)
  • Profit after tax was $192 million. (+118.18% YoY)
  • Earnings per share of 4.3 cents Vs 1.9 cents YoY
  • Total customer base during the period under review was 122.7 million.

See link to results

Airtel Africa Plc appoints new Director.

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Airtel Africa Plc, a leading provider of telecommunications and mobile money services, has announced the appointment of Ms Tsega Gebreyes as an independent non-executive director with immediate effect.

Ms Gebreyes appointment was announced in a statement released by the company to the Nigerian Exchange Limited (NGX) and signed by the Group Company Secretary, Simon O’Hara.

About Tsega Gebreyes

Ms. Gebreyes, an Ethiopian by nationality, is an accomplished financial expert and administrator. She sits on the boards of several private and non-private companies operating in Africa and beyond, serving in various capacities that includes but not limited to; audit, remuneration, finance committees, etc. She currently serves as a Non-Executive Director of the London Stock Exchange Group and as a Vice Chair of SES, a publicly listed company in Luxembourg.

She is the founding partner of Satya Capital Limited, a private investment firm that specializes in Africa related investments. She served as Chief Business Development and Strategy Officer of Celtel International BV and Senior Advisor to Zain.  Her previous experience includes her role as a founding partner of the New Africa Opportunity Fund, LLP, a $120 million private equity Fund anchored by Citibank. She has served in various positions at Citibank and McKinsey

Ms. Gebreyes holds a bachelor’s degree from Rhodes College and an MBA from Harvard Business School.

Commenting on her appointment, the Chairman of Airtel Africa Plc, Sunil Bharti Mittal said: ‘’On behalf of the Board, I am delighted that Tsega has agreed to join the Airtel Africa Board and we very much look forward to working closely with her. Tsega brings with her great telecommunications experience, working and investing in Africa and above all solid financial acumen. All this adds additional knowledge base at the Board”

Airtel Nigeria offers to buy back minority shares worth N61.24 billion.

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Airtel Networks Limited (‘Airtel Nigeria’), a leading provider of telecommunications services in Nigeria and a subsidiary of Airtel Africa Plc, has offered to buy back its 8.27% minority shareholdings at an offer price of N55.81 per share, totalling N61.24 billion.

In what appears to be an open offer, the telecommunication giant revealed that if all minority shareholders agreed to sell their shares, the total buy back will be worth an estimated N61.24 billion (c$148.1 million, using an exchange rate of 413.38 NGN/USD).

This was disclosed by the company via a statement made available on the website of the Nigerian Exchange Limited, which reads: ‘’ Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, today announces that its subsidiary Airtel Networks Limited (‘Airtel Nigeria’), a leading provider of telecommunications services in Nigeria, has initiated a process under which it seeks to buy back the 8.27% minority shareholdings at an offer price of NGN 55.81 per share. Assuming all minority shareholders decide to tender their shares, the total consideration is estimated to be NGN 61.24 bn (c$148.1mn using an exchange rate of 413.38 NGN/USD). This represents an open offer to all shareholders.’’

The company also revealed that further details about the deal will be subsequently communicated to all and sundry in due course.

About Airtel Nigeria

Airtel Nigeria (Airtel Networks Limited) is a leading mobile telecommunication services provider in Nigeria and a member of Airtel Africa Group, committed to providing innovative, exciting, affordable and quality mobile services to Nigerians. The company made history on August 5, 2001 by becoming the first telecoms operator to launch commercial GSM services in Nigeria and has scored a series of many “firsts” in the highly competitive Nigerian telecommunications market including the first to introduce toll-free 24-hour customer care; first to launch service in all the six geo-political zones in the country; first to introduce affordable recharge denominations; first to introduce monthly free SMS and first to introduce monthly airtime bonus.

Segun Ogunsanya assumes role as Airtel Africa CEO.

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Mr. Olusegun Ogunsanya has formally assumed his role as the Managing Director/ Chief Executive Officer of Airtel Africa Plc.

This was confirmed in a statement issued by the leading telecommunication firm, which stated that his role became effective from October 1, 2021. He took over from Mr. Raghunath Mandava, whose tenure formally ended on September 30, 2021.

Excerpts of the notice released by the telecommunication giant and made available on the website of the Nigerian Exchange Limited (NGX), read thus: ‘’ Airtel Africa plc, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, announces that further to the Company’s appointment of Olusegun “Segun” Ogunsanya, as Managing Director and Chief Executive Officer, Segun has begun his new role as at 1 October 2021 and joined the Board of Airtel Africa plc.’’

Recall that Airtel Africa Plc had earlier in April announced the appointment of Mr Segun Ogunsanya as the new MD/CEO of the Company. The notice stated that Ogunsanya who was then the CEO of Airtel Nigeria would join the Board of the parent company with effect from October 1, 2021.

Commenting on his resumption and his vision for the company, Mr Segun said: ‘’I am looking forward to building on the solid foundations the Group has established for future sustainable growth across Africa. Moving forward, we will invest even more in our network and distribution channels to serve the communities where we operate. By doing this, we will continue to sustainably bridge the digital divide, expand financial inclusion and meet the evolving needs of our customers.’’

About Segun Ogunsanya

Segun is a chartered accountant and an electronics engineer. He was previously Managing Director and CEO of Airtel Nigeria and was responsible for the overall management of the operations in the Company’s largest market. He has more than 25 years of working experience that spans business management, banking, consumer goods and telecoms. Before joining Airtel in 2012, Segun held leadership roles at Coca-Cola in Ghana, Nigeria, and Kenya (as MD and CEO). He has also been the Managing Director of Nigerian Bottling Company Ltd (Coca-Cola Hellenic owned) and Group head of retail banking operations at Ecobank Transnational Inc, covering 28 countries in Africa.

Airtel Africa receives $375 million in first closing of its mobile money deals.

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Airtel Africa, a leading provider of telecommunications and mobile money services, have received a total of $375 million from three investors-Qatar Investment Authority (QIA), Mastercard and The Rise Fund, in the first closing of its minority stake sales in the mobile money business segment.

This is according to a notification signed by the Group Company Secretary, Simon O’Hara, and sent to the Nigerian Exchange Limited (NGX) today.

The disclosure is following the disbursement of a first tranche of $150m by QIA for the secondary purchase of shares in Airtel mobile money arm popularly referred to as Airtel Mobile Commerce BV (AMC BV). Consequently, the QIA is expected to disburse a further $50m in the second tranche of the deal.

Recall that the QIA had pledged to invest about $200 million in Airtel Africa’s mobile money business which is valued at $2.65 billion on a cash and debt free basis. With the closing of the first tranche of the deal, QIA is now entitled to appoint a director to the board of AMC BV and will now exercise certain customary information and minority protection rights.

With the first closing of QIA deal, Airtel Africa disclosed that it has received a total of $375 million from three investors, and will further receive $125 million in the second tranche of the deal, taking cumulative proceeds from minority stake sales in Airtel Money to a total of $500 million

In conclusion, the telecommunication giants reiterated its earlier stance that the net proceeds from the transactions will be used to reduce the Group debt and invest in network and sales infrastructure in the respective operating countries.

Back story:

  • Recall that global payments provider, Mastercard and The Rise Fund had earlier announced plans to invest $100 million and $200 million respectively in Airtel Mobile Commerce BV (AMC BV)

 

 

 

 

 

 

 

Airtel Africa posts profit after tax of $142m in HY 2021.

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Airtel Africa Plc released its unaudited financial results for the period ended 30th of June, 2021.

  • Revenue for the period was $1.1 billion. (+50.4% YoY)
  • Expenses totalled $581 million. (+21.3% YoY)
  • An operating profit of $352 million was recorded. (+67.6% YoY)
  • Capital expenditure totalled $106 million. (+59.9% YoY)
  • Operating free cash flow of $428 million (+38.7% YoY)
  • Profit after tax was $142 million. (+148.7% YoY)
  • Earnings per share of 3.3 cents Vs 1.1 cents YoY
  • Total customer base during the period under review was 120.8 million.

See link to results