Orange to acquire 2 Airtel operations in Africa - Mobile World Live

Orange to acquire 2 Airtel operations in Africa

13 JAN 2016

Orange sealed a deal with Airtel to buy its operations in Burkina Faso and Sierra Leone, but talks over two other subsidiaries in the region have fallen through.

The companies first entered into exclusive discussions in July 2015, with Orange declaring it was exploring the possible acquisition of four Airtel subsidiaries (in Burkina Faso, Chad, Congo Brazzaville and Sierra Leone) to build on its existing presence in the region.

Orange will now press ahead with the acquisition of 100 per cent of the share capital in Burkina Faso and Sierra Leone. The consolidated revenues for the pair is approximately €275 million, it said in a statement.

Its outlay for the deals will based on the financials of both operations for the year ending in March 2016, and will represent the equivalent of 7.9 times Airtel’s EBITDA in the two countries at the time.

It did not reveal why talks to acquire operations in Chad and Congo Brazzaville had lapsed.

Orange said the acquisitions will be implemented in partnership with its subsidiaries in Cote d’Ivoire and Senegal, notingthe move will add almost 5.5 million customers to its mobile arm in the region.

“This acquisition marks an important step forward in Orange’s dynamic growth strategy and will bring the group’s African footprint up to 20 countries in 2016,” it said.

Yesterday, Orange also announced a deal to acquire Cellcom Liberia, as part of the company’s “international development strategy”. It will acquire the company through its Cote d’Ivoire subsidiary.

Author

Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

Read more

Related

Tags