Airtel Africa announced the signing of an agreement under which Qatar Holding, an affiliate of the Qatar Investment Authority (QIA), will invest USD 200 million in Airtel Mobile Commerce, a subsidiary of Airtel Africa. AMC is the holding company for several of Airtel Africa’s mobile money operations and ultimately is intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries. The Transaction values Airtel Africa’s mobile money business at USD 2.65 billion on a cash- and debt-free basis.
QIA will hold a minority stake in AMC (alongside other minority investors), with Airtel Africa continuing to hold the majority stake. Following the announcement in March of a USD 200 million investment in AMC by TPG's The Rise Fund, in April of a USD 100 million investment in AMC by MasterCard and the sale of the Group's telecommunication towers companies in Madagascar and Malawi in March, the deal is a continuation of the group’s pursuit of strategic asset monetisation and investment opportunities, and it is the aim of Airtel Africa 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.
