Airtel Africa signs $200 million investment agreement
Airtel Africa, a leading provider of telecommunications and
mobile money services, with a presence in 14 countries across Africa, today announces the signing
of an agreement under which The Rise Fund, the global impact investing platform of leading
alternative investment firm TPG, will invest $200 million in Airtel Mobile Commerce BV (“AMC BV”),
a wholly owned subsidiary of Airtel Africa plc (the “Transaction”). AMC BV is currently the holding
company for several of Airtel Africa’s mobile money operations; and is now intended to own and
operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.
The Transaction values Airtel Africa’s mobile money business at $2.65 billion on a cash and debt
free basis. The Rise Fund will hold a minority stake in AMC BV upon completion of the Transaction,
with Airtel Africa continuing to hold the remaining majority stake. The Transaction is subject to
customary closing conditions including necessary regulatory filings and approvals, as necessary,
and the inclusion of specified mobile money business assets and contracts into AMC BV.
The Transaction is the latest step in the Group’s pursuit of strategic asset monetization and
investment opportunities, and it is the aim of Airtel Africa to explore the potential listing of the mobile
money business within four years. The Group is in discussions with other potential investors in
relation to possible further minority investments into Airtel Money, up to a total of 25% of the issued
share capital of AMC BV. There can be no certainty that a transaction will be concluded or as to the
final terms of any transactions.
The proceeds from the Transaction will be used to reduce Group debt and invest in network and
sales infrastructure in the respective operating countries.
Caption: Airtel Africa Chief Executive Officer, Raghunath Mandava.