Airtel Africa has announced an agreement under which Mastercard will invest USD 100 million in Airtel Mobile Commerce, a wholly owned subsidiary of Airtel Africa. AMC is currently the holding company for several Airtel Africa mobile money operations and is intended to own and operate the mobile money businesses in all of Airtel Africa's fourteen operating countries. The deal values Airtel Africa's mobile money business at USD 2.65 billion on a cash and debt-free basis. Mastercard will hold a minority stake in AMC upon completion, with Airtel Africa continuing to hold the majority stake.
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 to AMC. Alongside the investment, the group and Mastercard have extended commercial agreements and signed a new commercial framework to extend their partnerships in numerous geographies and areas including card issuance, payment gateway, payment processing, merchant acceptance and remittances, among others.
Following the announcement on 18 March of a USD 200 million investment in AMC BV by TPG's The Rise Fund, and the sale of telecommunication towers companies in Madagascar and Malawi on 23 March, the transaction continues the group's pursuit of strategic asset monetisation and investment opportunities. The proceeds from the transaction will be used to reduce group debt and invest in network and sales infrastructure in the respective operating countries.
