Mastercard to invest $100M in Airtel Africa's subsidiary Airtel Mobile Commerce BV

The Transaction values Airtel Africa's mobile money business at $2.65 billion on a cash and debt-free basis.

Apr 01, 2021 04:04 IST India Infoline News Service

Airtel
Bharti Airtel on Thursday announced that subsidiary Airtel Africa has signed an agreement with Mastercard where the latter will invest $100 million in Airtel Mobile Commerce BV ("AMC BV"), a wholly-owned subsidiary of Airtel Africa plc (the "Transaction").

AMC BV is currently the holding company for several of Airtel Africa's mobile money operations and 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 $2.65 billion on a cash and debt-free basis.

As per the regulatory filing, Mastercard will hold a minority stake in AMC BV upon completion of the Transaction, 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 into AMC BV.

Further, alongside e the investment, the Group and Mastercard have extended commercial agreements and signed a new commercial framework which will deepen their partnerships across numerous geographies and areas including card issuance, payment gateway, payment processing, merchant acceptance and remittance solutions, amongst others.

Bharti Airtel said that the proceeds from the Transaction will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries.

On Sensex, Bharti Airtel closed at Rs520.90 per piece up 0.7%.

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