Orange is set to acquire Airtel’s operations in Burkina Faso and Sierra Leone. The French telecom group made the announcement after signing a deal Bharti Airtel International BV.
Orange will acquire 100% of the two companies’ share capital. The two acquisitions will be implemented in partnership with Orange’s subsidiaries in the Côte d’Ivoire and Senegal.
The outlay for Orange for these deals 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 consolidated revenue of the two companies is around EUR275 million.
Through this deal, Orange will reinforce its presence in Africa with two additional countries, adding almost 5.5 million customers to its mobile customer base. This acquisition marks an important step forward in Orange’s dynamic growth strategy and will bring the Group’s African footprint up to 20 countries in 2016.
This is further to the initial agreement signed between Airtel and Orange in July 2015 regarding the potential acquisition of Airtel’s operations in Burkina Faso, Sierra Leone, Chad and Congo Brazzaville. The agreements regarding potential transactions in the remaining two countries have lapsed.
Lazard and Société Générale were advisors to Orange for this transaction. Airtel was advised by Arma Partners LLP.
The completion of these transactions remains subject to approval by the competent authorities.
News of these latest acquisitions follows closely from Orange’s announcement earlier this week that it had agreed to acquire Cellcom Liberia.