Bharti Airtel last week announced that the board of directors of Bharti Airtel International BV, its subsidiary covering the company’s African operations, has authorized its management to enter into non-binding exploratory discussions with banks and intermediaries to evaluate the possibility of an opening on the stock market of its African branch.
The company was however quick to point out that “the discussions are at an exploratory/preliminary stage. There is no certainty of a decision or final result.
But a closer look at the developments revealed that getting the African branch of Bharti Airtel to be listed on the African stock market would allow the telecom group to reduce its expenses. In addition, it would allow the company to record a large financial inflow that will help stabilize its financial health in order to reduce its debt.
Currently, Bharti Airtel, under intense competitive pressure in its main Indian market, saw last year’s revenues fall by 11.3%.
On the contrary, its finances in Africa grew by 5.3%, slightly supporting the group’s cash position. Revenue from African activity increased from 744 million to 783 million US dollars, driven by strong growth in the Data and Financial Transactions market.