Mastercard, TPG, QIA chip in $125m into Airtel Money second capital closing

Mastercard, TPG’s The Rise Fund and QIA have chipped in $125 million in the second close of Airtel Money minority fresh capital injections, the telecoms services and mobile money services provider, Airtel Africa, said in a statement on Tuesday.

In a disclosure filed to the Nigerian Exchange (NGX), it said this is coming in the wake of announcements made by the group on 18 March 2021, 1 April 2021 and 30 July 2021 respectively, which contained the first close of the Airtel Money minority investment transaction with Qatar Holding LLC, an affiliate of the Qatar Investment Authority (QIA), which saw an investment of about $150 million in a secondary purchase of shares in AMC BV from a subsidiary of Airtel Africa, with a further $50 million to be invested at second close upon further transfers of mobile money operations into AMC BV.

According to the disclosure by Airtel, this second close will see the company receive a total of $500 million cumulative proceeds from the minority stake sales in Airtel Money from the three investors.

“With the conditions for second closing having now been met, TPG and QIA have each invested a further $50 million, and Mastercard a further $25 million, in the secondary purchase of shares in AMC BV from a subsidiary of Airtel Africa. Both QIA and TPG each appointed a director to the board of AMC BV upon the first closings.

“With these second closings, Airtel Africa will have received a total of $500 million cumulative proceeds from the minority stake sales in Airtel Money from the three investors. As previously reported, the proceeds from these secondary stake sale transactions will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries,” the statement reads.

For the wireless carrier, it will continue to seek avenues to explore the potential listing of the mobile money business, which will now be valued at $2.65 billion, within four years.