Airtel Africa Plc has announced that it has further renewed the existing services agreements in place with Bharti Airtel Limited and its wholly owned subsidiary Bharti Airtel International (Netherlands) B.V, pursuant to which, Bharti Airtel Limited (itself or through its affiliates) provides certain services to the Company (and its subsidiaries) relating to finance, operations and corporate head office functions. The existing services agreements and the arrangements under them were described in the Company’s prospectus published in connection with its listing in June 2019.
For the purposes of Chapter 11 of the Listing Rules, Bharti Airtel Limited is a related party of the Company by virtue of its shareholding in the Company through its wholly-owned indirect subsidiary Airtel Africa Mauritius Limited.
Pursuant to Listing Rule 11.1.10R, the Transaction constitutes a ‘smaller related party transaction’, and this announcement is made in accordance with Listing Rule 11.1.10R (2) (c). Accordingly, the Company has received confirmation from a sponsor that the terms of the Transaction are fair and reasonable as far as shareholders of the Company are concerned.
The consideration paid to BAL under the existing services agreements in the financial year ended 31 March 2023 was $9.9m. It is estimated that the total payments to Bharti Airtel Limited in the current financial year and the next financial year under the renewed existing services agreements will amount to between $19.8m and $24m in aggregate over the two year period.