Mastercard is ready to invest $100 million into Airtel Mobile Commerce BV, a subsidiary wholly owned by Airtel Africa. The news is coming weeks after the impact investment arm of TPG; The rise fund invested $200 million in Airtel Africa. These deals involve the sale of 7.5% and 3.75% stake to TPG and Mastercard, respectively, valuing the business at $2.65 billion.
AMC BV intends to gain control of all mobile money businesses across all of Airtel Africa's fourteen operating countries, given the fact that it is currently the holding company for several of Airtel Africa's mobile money operations.
It is important to note that Airtel Africa still holds the majority stake despite the investments of both Mastercard and TPG, as both will only have a minority stake in AMC BV.
The transaction will be completed in two phases: a $75 million investment upon completing the transfer of adequate money operations and contracts to AMC BV. Secondly, a further $25 million investments once all transfers have been completed.
The transaction, according to africaglobalfunds, 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.
Airtel Africa recent dealings is a commitment to its objective of monetizing its mobile money business with minority investments totalling 25% of the issued share capital of AMC BV and exploring the possibility of the mobile money business being listed within four years.
Proceeds from the transaction will be used for reducing Group debt and investing in network and sales infrastructure in countries where they operate.