12 °c
London
Sunday, May 22, 2022
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home M&A

Qatar acquires stake in Airtel Africa’s mobile money business for US$200M

QIA will hold a minority stake in AMC BV upon completion of the Transaction (alongside other minority investors), with Airtel Africa continuing to hold the majority stake.

The Exchange by The Exchange
July 31, 2021
in Africa, FDI, Finance, Financial Inclusion, Mobile, Telecom
Reading Time: 3 mins read
793 42
0
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

Qatar Holding LLC, an affiliate of the Qatar Investment Authority (QIA) is set to invest $200 million in Airtel Africa’s mobile money business dubbed Airtel Mobile Commerce BV (AMC BV).

This follows an agreement that was signed between the two firms.

Majority stake

According to the signed agreement, QIA will hold a minority stake in AMC BV upon completion of the Transaction (alongside other minority investors), with Airtel Africa continuing to hold the majority stake. The Transaction is subject to customary closing conditions.

A statement released by the telecom’s operator states that deal will close in two tranches, $150 million invested at the first close. The remaining $50 million will be invested at the second close.

QIA will be entitled to appoint a director to the board of AMC BV and to certain customary information and minority protection rights.

AMC BV is the holding company for several of Airtel Africa’s mobile money operations and ultimately is intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.

Airtel Africa’s mobile money services is a leading digital mobile financial services platform catering to a large addressable market in Africa. It provides users access to mobile wallets, support for international money transfers, loans, and virtual credit cards.

Airtel Africa’s mobile money value

This transaction values Airtel Africa’s mobile money business at $2.65 billion on a cash and debt-free basis.

In April, global payments provider Mastercard invested $100 million in Airtel Mobile Commerce BV (AMC BV).

The Rise Fund, the global impact investing platform of investment firm TPG, also invested $200 million in Airtel mobile money arm.

Also read: The Rise Fund to invest US$200M in Airtel Africa’s US$2.65B mobile money business

Group debt

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

Airtel Africa’s most recent report for Q1 2021 shows a strong operational performance. The telecoms operator saw a year-on-year revenue growth of 53.7%, largely driven by a 24.6% growth in customer base to 23.1 million.

Transaction value went up 64.4% to $14.7 billion ($59 billion annualized); and EBITDA stood at $60 million ($240 million annualized) at a margin of 48.8%.


The company also generated $124 million in revenue ($496 million annualized), while its profits before tax year-on-year for Q1 2021 stood at $185 million.

According to Raghunath Mandava, the CEO of Airtel Africa, the deal with QIA will help the company realize the full potential from the substantial opportunity to bank the unbanked across Africa.

“With today’s announcement we are pleased to welcome QIA as a prospective 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,” he said.

Mansoor bin Ebrahim Al-Mahmoud, the CEO of QIA said they believe in Airtel Money’s mission to expand its role in facilitating economic activity, including for customers without access to traditional financial services.

“We are delighted to build on our support of Airtel Africa in promoting financial inclusion to the large and growing population of Sub-Saharan Africa. Airtel Money plays a critical role in facilitating economic activity, including for customers without access to traditional financial services. We firmly believe in its mission to expand these efforts over the coming years,” he said.

Airtel Africa ranks amongst the top 3 mobile service providers globally with nearly 100 million subscribers. It operates in 14 countries across Africa including Nigeria, Chad, Congo Brazzaville, Democratic Republic of Congo, Gabon, Madagascar, Niger, Kenya, Malawi, Seychelles, Tanzania, Uganda, Zambia and Rwanda.

Mobile money services are available across the Group’s 14 countries of operation, however in Nigeria the Group offers Airtel Money services through a partnership with a local bank and has applied for its own mobile banking licence.

It is the intention that all mobile money operations will now be owned and operated by AMC BV.


The Exchange

Related

Via: The Exchange
Tags: africaAirtel AfricaAirtel Mobile Commerce BVAMC BVFDIFinanceFinancial Inclusionfintechforeign direct investmentM&AMergers and AcquisitionsMobile MoneyqatarQatar acquires stake in Airtel Africa’s mobile money business for US$200MQatar Holding LLCQatar Investment AuthoritytelecomThe Rise Fundафрикаأفريقياアフリカ非洲
ScanSendShare334Tweet209Share58Pin75Send
The Exchange

The Exchange

News analysis and comment from the The Exchange, a leading publication providing economic news and analysis on the capital markets of Africa, with a specific interest in Kenya, Uganda, Tanzania, Rwanda, Burundi, Ethiopia and Congo. We provide features in banking, capital markets, energy, mining, manufacturing and industrial development.

Related Posts

Guidelines for PanAfrican payments and settlement system in Nigeria
Economy

Africa’s 5 Wealthiest Nations in 2022

by The Exchange
May 22, 2022
Travel

5 exceptionally romantic hotels in Africa

by See Africa Today
May 21, 2022
Stock Exchange and its benefits to Ethiopia
Culture

Ethiopia wonderful hidden secrets

by FurtherAfrica
May 21, 2022
Business

Rihanna’s Fenty Beauty seeks expansion in the African Market

by The Exchange
May 21, 2022
Travel

Spain, Morocco reopen land borders

by FurtherAfrica
May 20, 2022
Great Limpopo Transfrontier Park
 
AFSIC 2022
 
MozParks

Translate this page

Read the Latest

Guidelines for PanAfrican payments and settlement system in Nigeria
Economy

Africa’s 5 Wealthiest Nations in 2022

by The Exchange
May 22, 2022
0

African countries' wealth measured using gross domestic product (GDP). Nigeria is mostly reliant on petrol but it is also a...

Read more

5 exceptionally romantic hotels in Africa

May 21, 2022
Stock Exchange and its benefits to Ethiopia

Ethiopia wonderful hidden secrets

May 21, 2022

Rihanna’s Fenty Beauty seeks expansion in the African Market

May 21, 2022

Spain, Morocco reopen land borders

May 20, 2022

FurtherAfrica Partners

The Exchange Club of Mozambique Taarifa Rwanda
TechGist Africa Africa Oil & Power Farmers Review Africa
Tanzania Invest Zambia Invest See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
Digilogic Africa

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 73,051 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?