Tanzanian government to grow share in Airtel arm

Tanzania said Bharti Airtel has agreed to transfer a part of its stake in Airtel Tanzania to the local government, raising the East African nation′s holding to 49 per cent, from 40 per cent. The announcement comes after meetings between President John Magufuli and Bharti Airtel chairman Sunil Mittal to resolve the Tanzanian government's concerns that the shareholding pattern will change when Airtel′s African unit goes for an IPO. According to a press statement from the Tanzanian government, Mittal said, "The negotiations between his company and the Government of Tanzania are going well and that Bharti Airtel is satisfied with the agreements that have been reached regarding what has been negotiated for and that the aim of the negotiations was to make Airtel more strong, bring benefits for both sides and improve communication services for the company." Magufuli said "he is happy on the status of the negotiations where despite Bharti Airtel agreeing to increase the shares owned by the government ... the company has agreed to issue dividends to the Government of Tanzania as soon as the negotiations are completed," the statement added. The Tanzanian President said issuing dividends was a “good move” by Bharti Airtel since the government had “not been paid for the last eight to ten years". The percentage of dividend to be paid was not known at the time of going to press.