AIRTEL Africa has announced the signing of an agreement under which Mastercard will invest US$100m in Airtel Mobile Commerce BV.
AMC BV, which is wholly owned subsidiary of Airtel Africa plc, 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 US$2.65bn on a cash and debt free basis.
Mastercard will invest US$100m through a secondary purchase of shares in AMC BV from Airtel Africa.
The transaction will close in two stages. US$75m will be invested at first close, once the transfer of sufficient mobile money operations and contracts into AMC BV has been completed, with US$25m to be invested at second close upon further transfers.
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.
The Transaction is expected to reach first close over next three to four months. From first close, Mastercard will be entitled to certain customary information and minority protection rights.