Airtel Africa, a telecommunications and mobile money services provider, has announced that MasterCard has agreed to invest $100 million in Airtel Mobile Commerce BV (“AMC BV”).
AMC BV is a wholly owned subsidiary of Airtel Africa plc, according to a statement from the telco.
AMC BV, it added, was the holding company for many of Airtel Africa’s mobile money businesses in all of the company’s 14 countries of operation.
Airtel Africa’s mobile money company was valued at $2.65 billion in cash and debt-free terms, according to the announcement.
Following the conclusion of the Deal, Mastercard will own a minority interest in AMC BV, with Airtel Africa being the largest shareholder.
“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 into AMC BV.
“Alongside the investment, the Group and Mastercard have extended commercial agreements and signed a new commercial framework which will deepen their partnerships across numerous geography areas including card issuance, payment gateway and payment processing among others’’.
Raghunath Mandava, Chief Executive Officer at Airtel Africa, said: “With today’s announcement we are pleased to welcome Mastercard as an investor in our mobile money business, joining The Rise Fund which we announced two weeks ago’’.
He said this was a continuation strategy to increase the minority shareholding in its mobile money business with the further intention of listing this it within four years.
“We are significantly strengthening our existing strategic relationship with Mastercard to help us both realise the full potential from the substantial opportunity to improve financial inclusion across our countries of operation.
“The combination of our extensive customer base, distribution platforms and Mastercard’s products and services, we can accelerate demand and drive growth in financial services for the benefit of all our customers and markets, “Mandava said.