Airtel Africa PLC (LSE:AAF) shares leapt over 16% to 426.6p on Monday afternoon after majority shareholder Bharti Airtel said it planned to reorganise subsidiary holdings, including the FTSE 100 telecoms business.
In an exchange filing, the Indian telecoms giant said that at a scheduled meeting on 13 May, the board will reorganise its shareholdings, which is likely to result in the consolidation of shares of subsidiaries.
The reorganisation of subsidiary companies included Airtel Africa, it said, "which may result in consolidation/ acquisition of shares of such subsidiary company(ies), the consideration of which may be discharged through issuance of equity shares of the Company on a preferential basis and/ or cash".
Bharti Airtel currently owns 63% of the London-listed subsidiary's shares.
Airtel Africa is the second-largest revenue-generating segment for its parent company, which has significantly grown over the recent quarters.
Bharti family, via Bharti Airtel, held roughly a 66% stake when the African arm was floated in London in June 2019, with a secondary listing on the Nigerian Stock Exchange.
The shares were floated at a price of 80p per share and by the start of this year had climbed to above 350p.