In a strategic move to consolidate its position and expand its money services operations in the entire African continent, Airtel Africa announced the addition of Chimera Investment LLC as an additional investor in Airtel Mobile Commerce BV (AMC BV).
Making this move official, the company sent a circular to its shareholders and the general investing public via the Nigerian Stock Exchange announcing the payment of $50 million for secondary shares purchased from a subsidiary of Airtel Africa Plc.
Chimera Investment LLC Established in 2007, Chimera Investment LLC is an Abu Dhabi-based private investment firm managing a diversified portfolio of listed and unlisted equities in both local and regional markets.
The firm seeks value-creation opportunities where it can invest proprietary capital and stay in line with its investment philosophy and key guiding principles.
Chimera Investment LLC is part of Abu Dhabi’s Royal Group, a diversified conglomerate of companies comprising over 60 entities and employing 20,000 employees.
The group is active in a breadth of industries, including real estate, construction, fast-moving consumer goods, food and beverage, hospitality, aviation, healthcare, and general investments.
Airtel Africa operates through AMC BV, which is a holding company for several of Africa’s mobile money operations and ultimately intends to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.
According to the details of the deal, Chimera Investment LLC, through its subsidiary Chimetech Holding Ltd., will hold a minority stake in AMC BV alongside the other minority investors, with Airtel Africa continuing to hold the majority stake.
The transaction is a continuation of the group’s pursuit of strategic asset monetization and investment opportunities.
Airtel Africa aims to explore the potential listing of the mobile money business within four years.
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 profits before tax in the full year ended March 31, 2021 and the value of gross assets as of that date, attributable to Airtel Africa’s mobile money businesses, were $185 million and $668 million, respectively.
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