Airtel Rwanda a subsidiary company to Bharti Airtel agreed yesterday with Millicom International Cellular to acquire 100% stake in Tigo Rwanda, a deal which will make Airtel Rwanda the 2nd market player in Rwanda after MTN Rwanda.
“Bharti Airtel Limited, (Mother Company of Airtel Rwanda) has entered into a definitive agreement with Millicom International Cellular S.A. (Millicom) under which Airtel Rwanda Limited will acquire 100% equity interest in Tigo Rwanda Limited,” Bharti Airtel said in a statement.
Suni Bharti Mittal, the chairman of Bharti Airtel announced both companies struck a deal to merge the operations of both telecom companies to create a strong entity.
“After striking the same deal in Ghana, Airtel and Tigo have once again merged their operations to create a strong viable entity in Rwanda and we acquired Tigo Rwanda to become a profitable and a strong challenger in a two-player market,” said Sunil Bharti Mittal.
The acquisition will make Airtel Rwanda the second largest operator in Rwanda if approved by the regulator, Rwanda Utilities Regulatory Authority RURA.
According to Airtel announcement, the existing customers of Tigo Rwanda will join Airtel’s global network.
Tigo Rwanda was owned by Millicom telecommunications and Media company which has a strong presence in Latin America and Africa.
Tigo entered the Rwandan market in 2009 where the latest reports say it had 3,387,682 customers. Airtel joined Rwanda market in 2012.
Figures from RURA show Airtel had 1,628,510 subscribers in October this year. Both telecoms were preceded by Mobile Telecommunication Networks, MTN a South Africa-based multinational mobile telecommunications company which began its operations in 1998.