Airtel Africa Plc appoints new Director.

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.

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.

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.

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.

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

 

Airtel Africa pegs exchange rate for its final dividend payment at N410.95/$

Airtel Africa Plc, a leading pan-African provider of telecommunications and mobile money services, has announced that an exchange rate of N410.95/$ will be applicable in the determination of its proposed final dividend of 2.5 cents

According to a disclosure signed by the Group Company Secretary, Simon O’Hara and published on the website of the Nigerian Exchange Group Plc (NGX Plc), the rates will be applicable to any shareholder that qualifies for and has elected to receive the dividend payment in Naira, Dollar or GBP.

Additionally, shareholders’ on the London Stock Exchange and the Nigerian Exchange Limited who wish to receive their entire dividend in the currencies of their choice (other than the default currencies) are strongly advised to participate in the currency election, by obtaining, filling and returning the currency election form  to their respective company’s registrar domiciled in their countries. Investors are to check their respective  stock markets for more information as regards timeframe and other modalities.

Exchange rate

  • 1 USD=410.95 Naira
  • 1 USD=0.7068 GBP

The firm noted that the exchange rate for the Nigerian naira or GB Pounds amounts payable was determined by reference to the exchange rates applicable to the U.S dollar available on 9 June 2021.

For more information about the disclosure, click HERE

 

Airtel Africa Plc sells its Tanzanian towers for $175 million.

Airtel Africa Plc has announced the sales of its telecommunication tower companies in Tanzania, in a deal worth around $175 million.

The transaction is the latest strategic divestment of the Group’s tower portfolio as it focuses on an asset-light business model and its core subscriber-facing operations. The recent deal is sequel to the success recorded in the sales of the firm’s tower companies in Madagascar and Malawi to Helios Tower Plc for a gross value of about $93.7 million.

According to a notification signed by Airtel’s Group secretary, Simon O’Hara, the Airtel Tanzania tower was sold to a wholly-owned subsidiary of SBA Communications Corporation, a leading global owner and operator of wireless communications infrastructure.

The recently sold tower portfolio comprises approximately 1, 400 towers which form part of the Group’s wireless telecommunications infrastructure network.

Recall that Airtel Africa Plc was in the news recently when it secured a credit facility worth $500 million from a consortium of banks that include; Bank of America, JP Morgan, HSBC etc. The loan was meant to assist the teleco in partially refinancing its €750 million Euro dominated bond. Explaining how it intends to offset the credit facility, the teleco explained that it will optimize its free cash flows and cash receipts anticipated over the next 12 months from its tower sales and mobile money minority investments.

Will the transaction be settled once or by instalments?

According to the notice sent by the telecommunications giant, the payment for the towers will be made in tranches. In the first tranche, the sum of $157.5 million will be paid to Airtel during the second half of its current financial year. The balance will be paid in instalments upon the completion of the transfer of any remaining towers to the purchaser.

How will the proceeds be utilized?

Detailing how the proceeds from the sale of the towers will be utilized, Airtel Africa explained that about $60 million out of the gross sales value will be invested in the network and sales infrastructure in Tanzania and for distribution to the Government of Tanzania, as provided in the Airtel Africa IPO prospectus document published in June 2019.

The remaining balance of the proceeds will be used to reduce the debt at Group level.

 

Airtel Africa Plc reports profit after tax of $415million in FY 2020.

Airtel Africa Plc has released its results for the year ended 31st of March, 2021.

  • Revenue for the period was $3.9 billion. (+14.2% YoY)
  • Total expenses of $2.8 billion were incurred. (+10.3% YoY)
  • Operating profit of $1.12billion. (+24.2% YoY)
  • Profit after tax was $415 million. (+1.8% YoY)
  • Earnings per share of 9 cents. (-12.6% YoY)
  • A final dividend of 2.5 cents per ordinary share was proposed.

See link to results.

Airtel signs $500million loan facility to partially refinance €750million Euro dominated bond.

Airtel Africa Plc has announced the successful signing of a new $500million credit facility with a consortium of banks, in a bid to partially refinance its €750million Euro dominated bond due 20th of May, 2021.

This is according to a disclosure signed by the Group Company’s Secretary, Simon O’Hara and seen by Nairametrics.

According to the disclosure, the new facility consists of a combination of a revolving credit facility and term loans with tenor of up to 4 years. It also has prepayment flexibilities that will enable the Group to maximize the efficiency of its capital structure with the free cash flows and cash receipts expected over the next 12 months.

The Group also noted that while the new loan will be used to refinance its €750million bond commitments which translate to about (c. $880 million), the remaining balance of the Euro dominated bond will be repaid with existing Group cash to reduce gross debt and associated interest charges.

According to the notice, the banks which participated in the facility include a diverse group of existing global relationship banks, Bank of America, BNP Paribas, Citibank, HSBC, J.P. Morgan, Standard Chartered Bank and two Indian relationship banks, Axis Bank and Kotak Mahindra Bank.

What you should know:

  • Airtel Africa had earlier announced an agreement with Mastercard, for the latter to invest $100 million in its Mobile Commerce BV (Airtel Mobile Commerce BV).
  • On the other hand, the Group in about a month ago announced that it reached an agreement with Helios Tower Plc to sell its (Airtel) telecommunications tower companies in Madagascar and Malawi for a gross value of about $93.7million.