Airtel Africa said on Thursday that MasterCard would invest $ 100 million in its wholly owned subsidiary Airtel Mobile Commerce (AMC) BV.
Upon completion of the deal, MasterCard will hold a minority stake of 3.75% in AMC BV, while Airtel Africa will continue to own a majority stake.
The company said in a statement that the transaction values Airtel Africa’s mobile money business at $ 2.65 billion in cash and debt-free basis.
AMC BV is currently the holding company of several mobile money operations in Airtel Africa and intends to own and operate the mobile money business in all fourteen operating countries of Airtel Africa.
“Along with the investment, the group and MasterCard have extended commercial agreements and signed a new commercial framework that extends across multiple geographies and other regions, including card issuance, payment gateways, payment processing, merchant acceptance and remittance solutions. Will deepen participation, ”it added.
The proceeds from the transaction will be used to reduce group debt and invest in networks and sales infrastructure in the respective operating countries. The company said the transaction is subject to customary closing conditions, including required regulatory filings and approvals, and the transfer of mobile money business assets and contracts specified in AMC BV.
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