According to a regulatory filing with the BSE, Bharti Airtel has reduced its stake in the African unit from an estimated 92-93% to around 65%. Airtel Africa manages operations in 14 countries on the continent.
Singtel has invested around $250 million into Airtel Africa, forming part of a $1.25 billion in global funding from six investors – SoftBank, Warburg Pincus, Temasek are among the other investors named.
The current investment will be used to relieve some of Airtel Afirca’s outstanding debt and grow the business, ahead of a further initial public offering.
“Constitution of the company board follows recent successful primary equity issuance of $1.25 billion to six leading global investors, ahead of an intended IPO on an international stock exchange,” Airtel Africa said in a media statement Friday.
The public offering of the UK-based Airtel Africa will aim to raise a similar sum, according to reports from India, but it does face some challenges, with the government of Tanzania expressing disapproval of the IPO.
Airtel Africa manages a unit in Tanzania, but the government owns a 40% in the Dar es Salaam-based unit, and has told investors, through a letter, that it does not recognise Airtel’s IPO plans.
The government has also told investors that it expects to be treated as a joint venture partner in the process of welcoming new shareholders, according to a report from Livemint, which said it had seen the letter.
Airtel is Tanzania’s third-largest wireless carrier, with 10.6 million voice subscribers as of end-September 2017.
Bharti Airtel first revealed plans to list its Africa arm in February as part of a plan to raise about $8 billion.
