Mastercard is set to invest $100 million in Airtel Mobile Commerce (AMC), the mobile money subsidiary of Airtel Africa.
Airtel Africa is a FTSE-250 listed company that provides telecommunications and mobile money services in 14 countries in Africa, which posted $3.42 billion in revenue for 2020.
The investment values AMC at $2.65 billion and will give Mastercard a minority stake in the payments provider when completed.
AMC said the funding from the deal will be used to reduce debt and to invest in network and sales infrastructure.
The deal will also include an extension of the two companies’ commercial agreements and a new commercial framework covering several regions and business areas including: card issuance, payment gateway, payment processing, merchant acceptance, and remittance solutions.
Airtel Africa has previously discussed a separate public listing for AMC and plans to sell up to a 25 per cent stake in the subsidiary.
The news comes after US-based private equity investment firm TPG announced plans to invest $200 million in AMC last week.
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