MA MasterCard Incorporated

By Adria Calatayud

Mastercard Inc. has invested $100 million in Airtel Africa PLC's Airtel Mobile Commerce BV subsidiary, valuing the business at $2.65 billion, Airtel Africa said Thursday.

The U.K.-listed, Africa-focused telecommunications operator said Mastercard will hold a minority stake in AMC BV on completion of the deal, with Airtel Africa continuing to hold the majority stake. AMC BV is currently wholly owned by Airtel Africa, but last month it agreed to sell a stake in the unit to TPG's The Rise Fund for $200 million.

Mastercard and Airtel Africa have also agreed to deepen their partnerships across numerous markets and areas including card issuance, payment gateway, payment processing, merchant acceptance and remittance solutions, among others, Airtel Africa said.

Airtel Africa said it aims to continue to monetize its mobile money business with minority investments of up to a total of 25% of the issued share capital of AMC BV and to explore a potential listing of the unit within four years.

Proceeds from the transaction will help Airtel Africa to reduce debt and invest in network and sales infrastructure, it said.

Shares in Airtel Africa at 0830 GMT were up 2.5% at 81.30 pence.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

April 01, 2021 05:03 ET (09:03 GMT)

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