Bharti Airtel is set to acquire an additional 5% stake in Airtel Africa PLC by March 2025, raising its ownership from 57.29%.

The growth of Airtel Africa is primarily fueled by its mobile money services and a recovery in its largest market, Nigeria.

This acquisition, valued at approximately Rs 2,777 crore, is based on Airtel Africa's current market capitalization of around £5.07 billion.

As of December 2024, Airtel reported cash and bank balances of Rs 6,024.4 crore, which supports this investment.

The acquisition will be executed through one or multiple all-cash deals, as approved by the Special Committee of Directors.

The board of Bharti Airtel has already approved this strategic move to enhance its stake in its subsidiary.

Airtel Africa has shown impressive financial performance, reporting a consolidated net profit of Rs 14,781.20 crore for the quarter ending December 2024, a significant jump from Rs 2,442.20 crore in the previous quarter.

According to New Street Research, Airtel Africa is projected to achieve the highest revenue growth among African telecom operators in 2025, with an estimated growth rate of 20.6%.

In comparison, competitors such as MTN, Orange, and Vodacom are expected to grow at rates of 17.2%, 9%, and 6.8%, respectively.

Despite facing challenges like the devaluation of the Nigerian naira, Airtel Africa contributes 25% to Bharti Airtel's consolidated revenues.

The deal is expected to be finalized by March 31, 2025, and will be conducted through Airtel Africa Mauritius in one or more tranches.

Bharti Airtel has been operational in Africa for nearly 15 years, having initially acquired Zain Telecom's assets in 2010 for $10.7 billion.