Bharti Airtel on a shopping spree

Telecom service giant Bharti Airtel today signed an agreement with a leading telecom and media company Millicom to combine operations in Ghana with 50:50 rights in ownership and governance. The stock of Bharti Airtel will remain in the limelight in the coming trading sessions. The stock has just corrected from its multiple top near the Rs 380 level and may give a bounce with the news.

Together, the new entity will be the second strongest operator with around 10 million subscribers, inclusive of 56 per cent data users. The entity is expected to hold subscription of 80 per cent population in Ghana and assures widest 3G network with high speed.

The said consolidation would be done through their subsidiaries Airtel Ghana Limited and Tigo Ghana Limited and fetch revenues of nearly USD 300 million. Bharti Airtel holds 75 per cent shares in Airtel Ghana Limited and the company contributed nearly 1 per cent, i.e. Rs 47.2 crore in FY16 to Bharti Airtel’s consolidated profit, as against a loss of Rs 1277.5 crore in FY15. With this, Bharti Airtel would be able to strengthen its portfolio in Ghana and the combination will offer better synergies and high-end experience to the customers.

Prior to this in February 2017, Bharti Airtel had acquired a strategic stake in Fintech startup, Seynse Technlogies Private Limited. The company had also declared that it is in the process of acquiring Telenor (India) Communications Private Limited. Meanwhile, the company has informed that it has completed the merger of Auqere Wireless Broadband India Private Limited with itself.