Tech in Africa
Airtel Africa, a leading telecom and mobile money financial service provider, has entered into an agreement with Qatar Investment Authority, through its Qatar Holding LLC affiliate.
The agreement will see QIA invest $200 million into Airtel Mobile Commerce BV (AMC BV) – A holding company for Airtel Africa’s mobile money operations. The eventual outcome will see the company operate all Airtel’s mobile money presence in the 14 countries of operation. Funds will go into reducing the Group’s debt and investing in network and sales infrastructure across the respective countries.
The transaction value of Airtel’s mobile money business is set at $2.65 billion on a cash and debt-free basis. This transaction will see QIA will hold a minority stake in AMC BV, with Airtel Africa retaining the lion’s share. QIA will start with a $150m initial close subject to custom closing conditions and an additional $50 million once certain transfers of money operations contracts are completed by AMC BV.
In March, TPG’s The Rise Fund invested $200m into AMC BV. In April, MasterCard invested $100 million into AMC BV. for the sale of telecommunication towers in Malawi and Madagascar. The transaction is part of the group’s pursuit of strategic monetization and investment opportunities.
Airtel mobile moneys services generated $124 million in revenues with a $60m EBITDA. Airtel experienced a YoY quarter growth was 53.7% – driven by a 24.6% growth on its 23.1 million customer base, and 25.4% ARPU growth rate. Value of transactions grew by 64.4% to $14.7bn.
