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Airtel Africa Deal Boosts Mittal Family Stake
14 May
Summary
- Bharti Airtel's board approved a ₹28,220 crore share-swap deal.
- The transaction increases Bharti Airtel's stake in Airtel Africa to 79%.
- The cashless deal preserves company cash and boosts earnings per share.
Bharti Airtel's board has sanctioned a substantial ₹28,220 crore share-swap agreement with Indian Continent Investment (ICIL), a family office investment vehicle for the Sunil Bharti Mittal family. This transaction is designed to elevate Bharti Airtel's ownership in its UK-listed subsidiary, Airtel Africa.
The cashless deal involves Bharti Airtel issuing approximately 146.7 million new shares to ICIL. In return, ICIL will transfer its entire 16.31% stake in Airtel Africa to Bharti Airtel. This will raise Bharti Airtel's interest in its African operations to 79.04% from the previous 62.73%.
Analysts view this move positively, noting that the cashless structure preserves the company's cash reserves, which would have been depleted in an all-cash transaction. The deal also slightly increases ICIL's stake in Bharti Airtel, moving it to 3.25%.
