Bharti Airtel on Tuesday announced that it will buy out Abu Dhabi-based Warid Group’s telecom business in Uganda. With this, Airtel will become the second largest mobile operator in Uganda, with a combined customer base of over 7.4 million and a market share of over 39 per cent. South Africa’s MTN is the largest operator in that country, with 50 per cent market share.
While the companies did not disclose the deal amount, banking sources said Airtel may have paid $85-100 million for Warid Telecom Uganda. The agreement is subject to regulatory and statutory approvals.
Deal synergies
Airtel currently has 4.6 million customers in Uganda and Warid has 2.8 million. Speaking on the agreement, Manoj Kohli, MD and CEO (International), Bharti Airtel said: “This happens to be the first in-market acquisition in Bharti Airtel’s history. We believe this market consolidation offers great synergies by bringing together the best of Airtel and Warid to better serve customers in Uganda.”
Airtel has a presence across 17 African countries with over 62 million customers at the end of quarter ended December 31, 2012. Globally, Airtel is ranked the fourth largest mobile services provider in terms of customer base.