Airtel Africa on Thursday said Mastercard will invest $100 million in its wholly owned subsidiary Airtel Mobile Commerce (AMC) BV.
On completion of the deal, Mastercard will hold a minority stake of 3.75% in AMC BV, while Airtel Africa will continue to be the majority stake owner.
The transaction values Airtel Africa’s mobile money business at $2.65 billion on a cash and debt free basis, the company said in a statement.
AMC BV is currently the holding company for several of Airtel Africa’s mobile money operations and is intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.
“Alongside the investment, the Group and Mastercard have extended commercial agreements and signed a new commercial framework which will deepen their partnerships across numerous geographies and areas including card issuance, payment gateway, payment processing, merchant acceptance and remittance solutions, amongst others,” it added.
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 company added that 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.
Source: Read Full Article