Global: Airtel in talks to sell its four African subsidiaries

By July 21st, 2015 AT 6:50 PM

Bharti Airtel is in talks with Orange S. A., a French multinational telecommunications corporation to sell fours of its African subsidiaries at Burkina Faso, Chad, Congo Brazzaville and Sierra Leone, all non-English speaking markets in Africa. The decision to sell arises from the consecutive decline in sales the subsidiaries contributed to the company’s consolidated revenue.

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According to reports, the four countries together have contributed about $650-660 million to Airtel Africa’s top line of $4.71 billion as of Marchend. To compensate the loss, Airtel looks for around $900 million and $1 billion for the sale.

A statement released by Airtel said that the discussions with Orange are an exclusive agreement to explore the possible acquisition by Orange of Airtel’s subsidiaries and there is no certainty of any binding agreement as a result of these discussions. The company withdrew from providing any further details.

Unlike India, Africa has been causing dullness on Airtel’s global sales for long. Airtel’s net loss in Africa for the fiscal 4th quarter of the year ended March 2015 became $183 million (Rs 1,155.7 crore) from $105 million (Rs 663.1 crore) compared to the previous year. The revenue dropped by 12.6 percent in the quarter ended March 2015. However, the company’s subscription base grew by 9.8 percent year-on-year and has 76.3 million users.

Prior to selling of the subsidiaries, Bharti Airtel appointed new company head in Africa, Christian De Faria last year. However, no much changes were seen on the sales graph, which prompted the company to sell the subsidiaries.

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ShreyasMadhan KumaravoidloverSrikapardhiViranch Damani Recent comment authors
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Madhan Kumar
Madhan Kumar

A day will come when Airtel would be caught redhandedly for its Fraud doings and will be banned and thrown out of our India just like what happened with Maggi!

avoidlover
avoidlover

And then you would order dosas over your bsnl phone. I think bsnl will be privatized before that !

Madhan Kumar
Madhan Kumar

At that time u too will order your Dosa using Bsnl as no other option will be left for u wen Avoid looting grp are thrown out of India!

Shreyas
Shreyas

Then ur BSNL line will respond like this-Your Dosa number is not reachable ,you are in the Dosa queue which is exceptionally too long kindly try after some DAYS HAHAHAHA

Shreyas
Shreyas

Airtel should know that whomsoever it is appointing are human beings and not magicians or god sent angels its like having a cake and eat it too strategy from airtel with respect to african operations .Airtel should know it very clearly that they cannot be complacent with any other country just like they have with indian customers of course NMNP will keep it on its toes.

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