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Airtel Africa signs deal with Mastercard valuing mobile money arm at US$2.65bn

Airtel Africa PLC (LON:AAF) said that payments giant Mastercard will invest US$100mln in its subsidiary Airtel Mobile Commerce BV (AMC BV).

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 fourteen operating countries.

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The transaction values Airtel Africa’s mobile money arm at US$2.65bn on a cash and debt free basis, the telecoms provider said.

Mastercard will hold a minority stake in AMC BV once the deal is completed.

Alongside this investment, Airtel Africa and Mastercard have extended commercial agreements and signed a new commercial framework covering several countries and business areas including card issuance, payment gateway, payment processing, merchant acceptance and remittance solutions.

As previously announced, Airtel Africa aims to continue to monetise AMC BV with minority investments up to a total of 25% of its issued share capital, and to explore the potential listing of the mobile money business within four years.

The proceeds from the deal with Mastercard will be used to reduce debt and invest in network and sales infrastructure in the respective operating countries.

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