Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, yesterday announced that its Kenya subsidiary, Airtel Kenya Networks Limited (‘Airtel Kenya’), has agreed on settlements with the Communications Authority of Kenya regarding its operating and spectrum licenses.
This was disclosed through a notification sent to the Exchange and signed by Simon O’Hara, the group company secretary.
According to the notice, Airtel received approval for the replacement of its temporary license with a ten-year frequency license for 2×10 MHz of spectrum in the 2100 MHz band.
Interpreting the business transaction, O’Hara, said in respect of settlements regarding the 2015-2025 operating and spectrum license, Airtel Kenya will pay a total of about $20 million in four installments over the next three years.
Adding that, for the 2×10 MHz license, 2022-2032, Airtel Kenya has agreed to a ten-year license for $10 million.
However, it was stated that Airtel Kenya is one of Airtel Africa’s largest markets by revenue, as it grew the total revenue by 20.8 percent CAGR between 2018 and 2021 respectively.
“This $30 million investment reflects their continued confidence in the tremendous opportunity inherent in the Kenya market,” he said.
Specifically, on the trading floor of the Nigerian Exchange investors who were preview to inside information have continued to take a position and strategized. The movement of the stock since mid-February has continued to record deals fluctuation from as high as 66 deals to as low as 14 deals.
Precisely on the 16th of February, the stock maintained a unit price of N1,260 up till yesterday the 7th of March. The deals and volume of transaction has continued to move while retaining the N1,260 unit price in the last two weeks of 14 working days.
Speaking with a stockbroker, TBI Africa gathered that existing investors in the company rather than sell to new investors are taking position to increase their stakes before taking profits after a while.
As at close of business yesterday, Airtel Africa traded 81,018 shares across 36 deals worth N102.068 million. The market capitalization of the stock stands at N4.735 trillion.
