ByYessar Rosendar,
Forbes Staff.
Bharti Airtel—controlled by Indian billionaire Sunil Mittal—plans to consolidate its stake in its London-listed African unit through a 282-billion-rupee ($2.9 billion) stock swap, strengthening its control over the fast-growing business.
“The board recognized that the transaction is in line with the objective of consolidating or strengthening shareholding in a strategic subsidiary,” the company said in the statement. “The transaction is accretive to the EPS of Airtel India with additional earnings outweighing the dilution.”
Upon completion of the deal, which is subject to shareholder and regulatory approvals, Bharti Airtel’s Airtel Africa Mauritius will increase its stake in Airtel Africa to 79% from 62.7%.
