Bharti Airtel gained 1.92% to Rs 321.20 at 11:00 IST on BSE after the company said that Orange will acquire Bharti Airtel International (Netherlands) BV's subsidiaries in Burkina Faso and Sierra Leone.
The announcement was made by the company during market hours today, 13 January 2016.Meanwhile, the S&P BSE Sensex was up 167.74 points or 0.72% at Rs 24,859.33.
On BSE, so far 20,914 shares were traded in the counter as against average daily volume of 2.02 lakh shares in the past one quarter. The stock hit high of Rs 321.45 and low of Rs 318 so far during the day. The stock had hit a 52-week high of Rs 452.45 on 21 July 2015. The stock had hit a 52-week low of Rs 304.65 on 14 December 2015. The stock had outperformed the market over the past one month till 12 January 2016, gaining 1.87% compared with 1.45% decline in the Sensex. The scrip had, however, underperformed the market in past one quarter, dropping 9.82% as against Sensex's 8.26% decline.
The large-cap company has equity capital of Rs 1998.70 crore. Face value per share is Rs 5.
Orange and Bharti Airtel International (Netherlands) BV (Airtel), a subsidiary of Bharti Airtel have signed an agreement leading to Orange's acquisition of Airtel's operations in Burkina Faso and Sierra Leone.
Orange will acquire 100% of the two companies' share capital. The consolidated revenue of the two companies is around 275 million euros. These acquisitions will be implemented in partnership with Orange's subsidiaries in the Ce d'Ivoire and Senegal. The outlay for Orange for these transactions will be based on the financials of Airtel's two subsidiaries for the year ended 31 March 2016 (FY 2016) and will represent the equivalent of 7.9 times Airtel's earnings before interest, taxes, depreciation and amortization (EBITDA) in these two countries at this time. The completion of these transactions remains subject to approval by the competent authorities.
These acquisitions provide a clear illustration of Orange's international development strategy, which places a priority on accelerating growth in high-potential, emerging markets where the Group is not already present. 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.
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The deal is further to the initial agreement signed between Airtel and Orange in July 2015 regarding the potential acquisition by Orange of Airtel's operations in Burkina Faso, Sierra Leone, Chad and Congo Brazzaville. The agreements regarding potential transactions in the remaining two countries namely, Chad and Congo Brazzaville have lapsed.
Bharti Airtel's consolidated net profit rose 10.1% to Rs 1522.70 crore on 4.3% rise in net sales to Rs 23835.70 crore in Q2 September 2015 over Q2 September 2014.
Bharti Airtel is one of the leading global telecommunications service providers with operations in 20 countries across Asia and Africa.
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