Bharti Airtel to Acquire Tigo Operations in Rwanda

India’s telecom giant Bharti Airtel has signed an agreement with Millicom International Cellular S.A. to acquire 100 per cent stake in its Rwanda operation which operates under the brand name of Tigo Rwanda.

“Bharti Airtel Limited…has entered into a definitive agreement with Millicom International Cellular S.A. (Millicom) under which Airtel Rwanda Limited will acquire 100 per cent equity interest in Tigo Rwanda Limited,” Bharti Airtel said in a statement.

“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,” the statement said.

“The acquisition will consolidate the Rwandan telecom market and position Airtel as a strong number two operator with revenues of over $80 million and a market share of over 40 per cent,” the firm said in the statement.

Sunil Bharti Mittal, Chairman, Bharti Airtel, said the firm has taken 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,” said Mittal.

Airtel at present operates in 15 African countries apart from India and South Asia.

“We are also committed to the long term viability of our operations in two other countries i.e. Kenya and Tanzania, to ensure that in 2018 all our 15 operations in Africa start contributing positive margins and cash flows towards a healthy and profitable Airtel Africa,” Mittal said.