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  • Business - Companies
  • Updated: April 01, 2021

Airtel Africa Receives $100m Investment From Mastercard

Airtel Africa Receives $100m Investment From Mastercard

Airtel Africa PLC on Thursday said it sold a USD100 million stake in its Airtel Mobile Commerce subsidiary to Mastercard Inc at a valuation of USD2.65 billion.

“Mastercard will hold a minority stake in AMC BV upon completion of the transaction, with Airtel Africa continuing to hold the majority stake,” Airtel Africa Plc said in an official statement.

Mastercard will hold a minority stake in Airtel Mobile Commerce, in line with Airtel Africa’s plan to monetize the mobile money business by selling up to a 25 percent stake in the unit, the company said.

READ ALSO: Airtel Africa Sells Mobile Money Stake To TPG's Rise Fund

The transaction comes just weeks after The Rise Fund, the impact investing arm of TPG, invested $200 million in Airtel Mobile Commerce (AMC), at a $2.65 billion valuation.

AMC 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.

The proceeds from the sale will be used to cut debt and invest in network and sales infrastructure, Airtel Africa said.

"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," Chief Executive Raghunath Mandava said.

 

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