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Telecom major Bharti Airtel today said that it has entered into a definitive agreement with Millicom International Cellular S.A. under which Airtel Rwanda will acquire 100 percent 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 percent equity interest in Tigo Rwanda Limited," Bharti Airtel said.
"Airtel has taken proactive 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 Sunil Bharti Mittal, Chairman Bharti Airtel.
Under this deal, Tigo's 370 million customers will join the network of Airtel Rwanda. The acquisition will make Airtel Rwanda the second largest operator in the country with revenues of over $80 million and a revenue market share of over 40 percent, the statement said.
"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 further said.
The telco at present operates in 15 African countries apart from India and South Asia.
Airtel is one of the largest telecom service providers across the continent in terms of geographical reach and had close to 83 million customers at the end of the quarter ended September 30, 2017, the statement further said.