Airtel Africa Hits N2000/s Amidst CEO Exit
Airtel Africa’s share price has inched to N2000, details of top stocks screened on the Nigerian Exchange (NGX) showed. The telecom giant’s market valuation ranked higher on the local bourse, after the previous fall from the cliff.
As of Friday, equities investors placed N7.5 trillion on the telecommunication giant as market value Airtel Africa Plc’s 3.758 billion shares outstanding now valued at N7.516 trillion amidst an ongoing bargain hunting in the market.
The telecom giant with dual listing had lost the most valuable brand title to MTN Nigeria Plc and Dangote following strong selloffs that hit its stock.
In a notice on the Nigerian Exchange, Indian Continent Investment Limited, a person discharging managerial responsibilities, ramped up large shares of Airtel Africa, driving positive sentiment that pushed the market price higher.
The management told the Nigerian Exchange that Indian Continent Investment Limited spent US$184,855,854 on 127147531 shares at $1.4539 outside the trading venue.
The transaction was consummated outside the Nigerian bourse but there is a requirement that demand such magnificent share acquisition should be reported for public investors to make an informed decision.
The price climbed as management announced the retirement of its chief executive officer, Olusegun Ogunsanya and the appointment of Sunil Taldar, who joined Airtel Africa in October 2023 as Director – Transformation, Chief Executive.
Following a transition period, Mr Taldar will be appointed to the Board as an Executive Director and assume the role of CEO on 1 July 2024, at which time Segun will retire from the Board and the Company.
It has been a privilege to spend over 12 years of my career at Airtel Africa and I am proud of what we have delivered for customers across Africa. We continue to transform lives.
“Now is the right time to handover to a new leader who can build on Airtel Africa’s strengths and deliver on the significant opportunities ahead as I pursue my renewed interest in the empowerment of Africans through digital and financial inclusion in a different capacity beyond the boundaries of for-profit organizations.
“This has been my ambition after a successful career spanning over 35 years in banking, FMCG and telecommunications” Ogunsanya said in a statement. Dangote Reacts to EFCC Visit to Headquarters
The telecom giant hints that following his retirement from Airtel Africa, Mr Ogunsanya will also be available to advise the Chairman, the Airtel Africa Board and Chief Executive Officer for 12 months.
The telecommunications sector has seen negative effect of current macroeconomic issues, as seen in dwindling industry numbers. In Q3 2023, the sector grew 7.74% compared with 9.74% in Q2 2023, while contributing 15.97% to the aggregate real GDP growth.
According to the Nigerian Communications Commission (NCC), Teledensity, the number of active telephone connections per 1,000 inhabitants living within an area, declined to 115.63% in August 2023 from 115.70% in July 2023.
Broadband penetration also declined to 45.57% from 47.01%, while mobile subscriptions declined to 220.72 million from 220.86 million.
Players in the sector in recent times are being faced with significant growth in OPEX due to the Naira depreciation, elevated inflation and scarcity of FX leading to increased costs of lease rentals and additional site rollout.
