Following the mobile phone company’s announcement that proceeds of a tower sale will be used to reduce debt, Airtel Africa’s shares reached an all-time high on Wednesday, lifting Nigeria’s main stock index.
A Nigerian company having a dual listing in London gained the maximum 10% allowed to 1,050.50 naira, the third largest listed company in Nigeria.A seven-week high was achieved with the main index up 1.05%.
A joint venture company in Tanzania acquired Airtel’s tower assets in Tanzania for $176.1 million. There are 14 countries in Africa served by Airtel.
In Tanzania, approximately $60 million of the proceeds will be used for investment in network and sales infrastructure, while the balance will be used to reduce group debt.