Airtel Africa, a telecommunications and mobile money services provider announced that Qatar Holding LLC, a subsidiary of the Qatar Investment Authority (“QIA”), will invest $200 million in Airtel Mobile Commerce BV (“AMC BV”), a subsidiary of Airtel Africa Plc
AMC BV is the holding company for several of Airtel Africa’s mobile money operations, with the goal of eventually owning and controlling all of Airtel Africa’s fourteen operating nations’ mobile money companies.
Mobile money services from Airtel Africa are a digital mobile financial services platform that caters to a huge addressable market in Africa.
Mobile wallets, international money transfers, loans, and virtual credit cards are all available to customers.
On a cash and debt-free basis, this purchase values Airtel Africa’s mobile money business at $2.65 billion.
Mastercard made a $100 million investment in Airtel Mobile Commerce BV in April (AMC BV).
TPG’s Rise Fund, a global impact investing platform, has invested $200 million in Airtel’s mobile money division.
According to a statement made by the telecoms operator, QIA would own a minority part in AMC BV, with Airtel Africa remaining the largest shareholder.
“With today’s announcement, we are pleased to welcome QIA as a potential investor in our mobile money business, joining both Mastercard and TPG’s The Rise Fund as a further partner to help us realize the full potential from the substantial opportunity to bank the unbanked across Africa,” said Raghunath Mandava, CEO of Airtel Africa.
“We are thrilled to build on our support of Airtel Africa in promoting financial inclusion to the enormous and increasing population of Sub-Saharan Africa,” said Mansoor bin Ebrahim Al-Mahmoud, CEO of QIA. Airtel Money is important in supporting economic activity, especially for customers who do not have access to traditional financial services.”
The acquisition will be completed in two stages, with the first investing $150 million. At the second close, the remaining $50 million will be invested. QIA will be able to appoint a director to AMC BV’s board of directors, as well as have access to certain customary information and minority protection rights. The most recent report from Airtel Africa for Q1 2021 demonstrates a great operational performance. The telecoms provider witnessed a 53.7 per cent increase in revenue year over year, owing to a 24.6 per cent increase in subscriber base to 23.1 million.
The Transaction proceeds will be utilized to pay down Group debt and invest in network and sales infrastructure.