Airtel Africa mobile money biz gets $100 million infusions from Mastercard

Mastercard: Airtel Africa plc is a multinational company that provides telecommunications and mobile money services in 14 countries in Africa. While it has signed a deal to sell a minority stake in its mobile money operations to global. Payment processor Mastercard Inc for $100 million, valuing the business at $2.65 billion.

On the other side, under the agreement, Mastercard will invest $100 million in Airtel Mobile Commerce BV, a wholly-owned arm of Airtel Africa plc. AMC BV is the holding company for several of Airtel Africa’s mobile money operations. And is intending to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.

Moreover, this month Airtel Africa had signed a deal to sell a 7.5% stake. In its money business to US private equity firm, TPG for $200 million. Airtel shares up 0.67% at Rs. 520.75 in Wednesday early afternoon trade on BSE. While Mastercard will hold a minority stake in AMC BV upon completion of the transaction. Airtel Africa continuing to hold the majority stake Airtel Africa Plc said in an official statement.

 However, the transaction, it added, 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. While transaction proceeds will be used to cut group debt and invest in the network. And sales infrastructure in the respective operating countries in Africa.

Airtel Africa added that the transaction is a continuation of the Airtel Group’s pursuit of strategic asset monetization and investment time. But, Airtel Africa aims to continue to monetize its mobile money business with minority investments up to a total of 25% of the issued share capital of AMC BV. And to explore the potential listing of the mobile money business within four years.