As economic downturn rages in Africa, Airtel may join the leagues of Telcos that are leaving the African market.
The report via Bloomberg claims that Airtel “is considering mergers or stake sales at some of its Africa operations as it looks to cut debt and make its biggest overseas acquisition profitable.” Speaking at the World Economic Forum in Davos, Mr Mittal, the chairman of Bharti Airtel, said this process would be completed within a year and would affect some of Bharti’s businesses in 15 African nations, including Nigeria.
Apparently, business has not been smooth for Airtel Africa. They lost $91 million in the quarter to September 2016. This was, however, an improvement from a $170 million loss over a similar quarter the previous year.
In order to reduce the debt, they are also considering selling a stake in Bharti Infratel Ltd., its tower unit. A committee was studying whether the sale would be a minority stake or control of the tower unit and a decision could be taken in a month, Mittal said.
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Source: Bloomberg
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