It will be utilised for Airtel Africa's preparation for an intended IPO.
Singtel will invest $250m in Africa’s second largest telco operator Airtel Africa which is a subsidiary of Singtel’s regional associate, Bharti Airtel (Airtel) where Singtel holds 39.5% stake, an announcement revealed.
The investment will be used to reduce Airtel Africa’s existing debt and grow its business ahead of an intended initial public offering (IPO).
“As Airtel continues to execute on its transformation strategy to become a leader in data and mobile money in Africa, we believe it is in a strong position to benefit from increasing smartphone penetration and mobile money adoption,” Singtel International Group CEO Arthur Lang said.
The deal is part of the $1.72b (US$1.25b) that Airtel secured from global investors, including Temasek, Warburg Pincus and Softbank Group International, through a primary equity issuance in Airtel Africa, at a post-money equity value of US$4.4 billion.
Airtel Africa is the second largest telecom operator in the continent with a customer base of 91 million.
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