Bharti Airtel ends lower despite plans to consolidate Africa business

NEW DELHI: Shares of Bharti Airtel advanced in early trade on Tuesday on reports that the company may soon be involved in a potential consolidation opportunity in Nigeria, its largest Africa market. However, the stock shed its early gains and ended the day in red.

According to reports efforts are underway in Nigeria to find a buyer for the country’s troubled fourth-largest carrier, Etisalat Nigeria.

Following the development, the stock had gained 1.51 per cent to Rs 414 on BSE. The scrip opened at Rs 408.25 and touched an intraday high and low of Rs 429.60 and Rs 398.80, respectively. It eventually ended the session 0.10 per cent down at Rs 408.20.

In a note to its clients, Bank of America Merrill Lynch said, “Nigeria is Bharti’s largest Africa market where a potential consolidation opportunity is arising with Etisalat Nigeria looking for buyers after having failed to service debt obligations.”

Nigeria generates 30 per cent of Bharti Airtel’s Africa revenues.

The US brokerage, further, said “it remains to be seen if Bharti explores a Ghana market equivalent joint venture opportunity” in Nigeria although it does not specifically name potential JV partners.