Orange and Bharti Airtel BSE -2.09 % International yesterday Wednesday inked a deal that will allow Orange’s acquisition of Airtel’s operations in Burkina Faso and Sierra Leone.
Report by Indiantimes state that Orange will acquire 100% stake in the two companies’ share capital. The consolidated revenue of the two companies is around 275 million euros, Bharti Airtel said in a statement.
These acquisitions, according to Airtel, will be implemented in partnership with Orange’s subsidiaries in the Cote d’Ivoire and Senegal.
The outlay for Orange for these transactions will be based on the financials of Airtel’s two subsidiaries for the year ended March 31, 2016 and will represent the equivalent of 7.9 times Airtel’s EBITDA in these two countries at this time.
The completion of these transactions remains subject to approval by the competent authorities.
The agreements regarding potential transactions in the remaining two countries, Chad and Congo Brazzaville have lapsed.
With Airtel merger, Orange will reinforce its presence in Africa in two additional markets, adding nearly 5.5 million customers to its mobile customer base.