Nigerian Market Prices Airtel Africa for About N8trn
Telecom giant Airtel Africa Plc.’s market valuation now seats at N7.666 trillion, according to data from the Nigerian Exchange. The local equities market’s largest company by valuation’s share price inched up 7.06% last week to N2,040 from N1,905.40.
The company’s share price surged after it announces the signing of a $125 million revolving credit facility with Citi through its branch offices/subsidiaries in sub-Saharan Africa.
“This facility is in line with our strategy to raise debt in our local operating companies and will include both local currency and US dollar-denominated debt”, the company said. The facility has a tenor up to September 2024 and will be used to support Airtel Africa’s operations and investments in four of its subsidiaries.
Management said the facility provides potential interest rate savings in exchange for achieving social impact milestones relating to digital inclusion and gender diversity, with a focus on rural areas and women.
In its first half result, Airtel Africa’s revenue surged to $1.257 billion, an increase of 13.04% above $1.112 billion recorded in the first half of 2021. Its topline growth was driven by a 28% year-on-year increase in mobile money revenue.
The company’s result showed that on year on year basis, its voice and data revenue as well as other reserves advanced strongly, helping the company’s overall income. READ: Telecom Giant Airtel Africa Grows Profit By 82%
The telecom company’s profit inched upward 25.35% to $178 million from $142 million dollar in the comparable period in 2021. Earnings per share skyrocketed 33.33% to $4.40 from $3.30 in the first half of 2021.
MarketForces Africa reported that the telecom company’s share price has been relatively stable since the company completed its share buyback programme in December 2021.
Airtel Africa announced its buyout offer in October 2021 and it completed the purchase of minority shareholding buyback of Airtel Networks Limited, a subsidiary of Airtel Africa Plc and a leading provider of telecommunication services in Nigeria.
Total consideration for the 8.22% minority shareholdings acquired under the buyback was N61 billion, equivalent to $147 million using an exchange rate of N415.07 per dollar. After the completion, Airtel Africa now holds 99.96% ownership over its largest subsidiary. #Nigerian Market Prices Airtel Africa for About N8trn
