According to Bharti Airtel, investment firm TPG’s Rise Fund will invest $200 in Airtel Africa’s mobile business Airtel Mobile Commerce (AMC) BV at a valuation of $2.65 billion.
Upon completion of the transaction, Rise Fund will hold a minority stake (7.5 per cent) in AMC BV, with Airtel Africa continuing to hold the remaining majority stake.
While, $150 million will be invested at the first close, once the transfer of sufficient mobile money operations and contracts into AMC BV has been completed, $50 million to be invested at the second close upon further transfers. According to industry sources, the transaction is expected to reach first close over the next three to four months.
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 Airtel Africa’s 14 operating countries.
Meanwhile, Airtel Africa Group is also in discussions with other potential investors in relation to possible further minority investments into Airtel Money, up to a total of 25 per cent of the issued share capital of AMC BV.