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Bharti Airtel said nearly all of its shareholders have approved the telecom major's proposed transaction to consolidate its stake in Airtel Africa plc, a move the company said would strengthen its position in one of its key growth markets and enhance long-term shareholder value.
The approval pertains to Bharti Airtel's plan to issue equity shares on a preferential basis to Indian Continent Investment Limited (ICIL), a promoter group entity, in exchange for ICIL's 16.31 per cent stake in Airtel Africa. According to the company release, the proposal received overwhelming support from shareholders, including public and institutional investors, reflecting confidence in the strategic rationale of the transaction and its potential to create value over the long term. Bharti Airtel said the transaction has been structured as a cashless share swap, allowing the company to increase its economic interest in Airtel Africa without incurring additional debt or cash outflow. The company added that the move would simplify the group's shareholding structure and further strengthen transparency and governance standards. Commenting on the development, Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises, said Airtel Africa remains a critical pillar of the group's future growth plans. "Airtel Africa is central to our growth strategy and is well positioned to deliver robust performance with an increasing contribution to our consolidated revenues. The company has always operated at the highest standards of corporate governance and financial discipline, and this overwhelming support reinforces the confidence that the investors have in the organization," Mittal said. Highlighting the structure of the deal, Mittal added, "Structured as a share swap, India's largest ever transaction preserves capital strength for Airtel's core operations and future growth ambitions. As we look ahead, we see significant potential in Africa for long-term shareholder value creation." The company said that upon completion of the transaction and receipt of all necessary regulatory approvals, Bharti Airtel's effective stake in Airtel Africa will rise to around 79 per cent. Bharti Airtel described the move as part of its calibrated strategy to progressively strengthen ownership in Airtel Africa, which it regards as a strategic growth platform within the group. (ANI)
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