Airtel Africa has announced that Mastercard would invest USD 100 million (about Rs 733 crore) in its wholly-owned subsidiary Airtel Mobile Commerce BV (AMC BV). Mastercard would hold a minority stake in AMC BV on completion of the deal, with Airtel Africa continuing to hold the majority stake, an Airtel statement said. Sources privy to the development told PTI that Mastercard would get about 3.75 per cent stake in the company.

AMC BV 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 14 operating countries. The proceeds from the transaction would be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries.

“Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, announces the signing of an agreement under which Mastercard, a leading innovator and global technology company in the payments industry, will invest USD 100 million in Airtel Mobile Commerce BV…,” the statement said. The latest deal values Airtel Africa’s mobile money business at USD 2.65 billion on a cash and debt-free basis.

Mastercard – via one of its wholly-owned subsidiaries – will make the investment through a secondary purchase of shares in AMC BV from Airtel Africa. The transaction would close in two stages – USD 75 million to be invested at the first close, once the transfer of sufficient mobile money operations and contracts into AMC BV has been completed, while USD 25 million will be invested at the second close on further transfers.