Bhart Airtel has announced its intentions to exit Kenya, Rwanda and Tanzania , a move that would see the telecom company reduce leverage and boost margins in Africa
“Such asset sales could help Bharti reduce leverage further and potentially help expand margins,” said brokerage Goldman Sachs, adding that “the three countries where Bharti is looking for exits/M&A options have margins significantly lower vs the current Africa average”.
Bharti Airtel ‘s business posted a loss of Ksh 8.1 billion as of December 2016 with current liabilities standing at Ksh 55.3 billion against assets worth Ksh 9.7 billion. Ideally, the business is deeply in a negative position. Its total debt load during the period grew to Ksh 44.3 billion ($429.62M)
Despite NASA leader Raila Odinga urging his supporters to consume Airtel products, the move didn’t help the company realize its initial objectives. It’s now a double tragedy for NASA fraternity .