Airtel Africa on Thursday said Mastercard will invest $100 million (Ksh 1.09 billion) in its wholly-owned subsidiary Airtel Mobile Commerce (AMC) BV.
AMC BV is currently the holding company for several of Airtel Africa’s mobile money operations.
The Transaction values Airtel Africa’s mobile money business at Ksh. 289 billion ($2.65 billion) on a cash and debt-free basis.
Mastercard will hold a minority stake in AMC BV upon completion of the Transaction, with Airtel Africa continuing to hold the majority stake.
“With today’s announcement, we are pleased to welcome Mastercard as an investor in our mobile money business, joining The Rise Fund, which we announced two weeks ago,” CEO of Airtel Africa, Raghunath Mandava said of the investment.
“This is a continuation of our strategy to increase the minority shareholding in our mobile money business with the further intention to list this business within four years. We are significantly strengthening our existing strategic relationship with Mastercard to help us realise the full potential from the substantial opportunity to improve financial inclusion across our countries of operation.”
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The proceeds from the transaction will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries. The Transaction is subject to customary closing conditions including necessary regulatory filings and approvals, and the transfer of specified mobile money business assets and contracts into AMC BV.
