Orange and Bharti Airtel International have signed an agreement
leading to Orange’s acquisition of Airtel’s operations in Burkina Faso
and Sierra Leone.
Orange will acquire 100% of the two companies’ share capital. The
consolidated revenue of the two companies is around 275 million euros.
These acquisitions will be implemented in partnership with Orange’s
subsidiaries in the Côte d’Ivoire and Senegal.
The outlay for Orange for these transactions will be based on the
financials of Airtel’s two subsidiaries for the year ended March 31,
2016 and will represent the equivalent of 7.9 times Airtel’s EBITDA in
these two countries at this time. The completion of these transactions
remains subject to approval by the competent authorities.
These acquisitions provide a clear illustration of Orange’s
international development strategy, which places a priority on
accelerating growth in high-potential, emerging markets where the Group
is not already present.
Through this deal, Orange will reinforce its presence in Africa with
two additional countries, adding almost 5.5 million customers to its
mobile customer base. This acquisition marks an important step forward
in Orange’s dynamic growth strategy and will bring the Group’s African
footprint up to 20 countries in 2016.
This is further to the initial agreement signed between Airtel and
Orange in July 2015 regarding the potential acquisition of Airtel’s
operations in Burkina Faso, Sierra Leone, Chad and Congo Brazzaville.
The agreements regarding potential transactions in the remaining two
countries have lapsed.
- Blogger Comment
- Facebook Comment
Subscribe to:
Post Comments
(
Atom
)
0 comments:
Post a Comment