Does it mean that MTN Nigeria which was listed in the Nigerian Stock Exchange at close to $6 billion is bigger than Airtel Africa? Briefcase Africa reports that “Airtel Africa wants to sell 25% of its stock to new investors, raising almost £1 billion in the process, mostly to pay down debt”, implying the company is worth around $5 billion. Today, the market cap of MTN Nigeria is N2.77 trillion (about $9 billion if you use CBN exchange rate or $7.7 billion with black market rate). For Airtel Africa to be asking for $5 billion when MTN Nigeria is worth $9 billion seems strange.
Airtel Africa, a subsidiary of Indian telecoms group Bharti Airtel Ltd. isreportedly planning a listingon the London Stock Exchange. It plans to sell 25% of its stock to new investors in a bid to raise US$1 billion in the process, mostly to pay down debt. Cash injection from existing investors has already helped to reduce Airtel Africa’s net debt to $4 billion in March, compared to $7.7 billion in the previous year. JPMorgan, Bank of America, Citi, Barclays, and Goldman Sachs are among nine banks AIrrtel has selected to assist with the listing which may happen as soon as next month. The company, operating in 14 African countries, also plans to list on the Nigerian Stock Exchange (TC Daily)