Airtel Africa, a leading provider of telecommunications and mobile money services, have received a total of $375 million from three investors-Qatar Investment Authority (QIA), Mastercard and The Rise Fund, in the first closing of its minority stake sales in the mobile money business segment.
This is according to a notification signed by the Group Company Secretary, Simon O’Hara, and sent to the Nigerian Exchange Limited (NGX) today.
The disclosure is following the disbursement of a first tranche of $150m by QIA for the secondary purchase of shares in Airtel mobile money arm popularly referred to as Airtel Mobile Commerce BV (AMC BV). Consequently, the QIA is expected to disburse a further $50m in the second tranche of the deal.
Recall that the QIA had pledged to invest about $200 million in Airtel Africa’s mobile money business which is valued at $2.65 billion on a cash and debt free basis. With the closing of the first tranche of the deal, QIA is now entitled to appoint a director to the board of AMC BV and will now exercise certain customary information and minority protection rights.
With the first closing of QIA deal, Airtel Africa disclosed that it has received a total of $375 million from three investors, and will further receive $125 million in the second tranche of the deal, taking cumulative proceeds from minority stake sales in Airtel Money to a total of $500 million
In conclusion, the telecommunication giants reiterated its earlier stance that the net proceeds from the transactions will be used to reduce the Group debt and invest in network and sales infrastructure in the respective operating countries.
Back story:
- Recall that global payments provider, Mastercard and The Rise Fund had earlier announced plans to invest $100 million and $200 million respectively in Airtel Mobile Commerce BV (AMC BV)
