Tag: Airtel Africa Plc

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

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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.

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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.

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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.

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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.