Qatar Holding LLC, an affiliate of the Qatar Investment Authority (QIA) is set to invest $200 million in Airtel Africa's mobile money business dubbed Airtel Mobile Commerce BV (AMC BV).

This follows an agreement that was signed between the two firms.

Majority stake

According to the signed agreement, QIA will hold a minority stake in AMC BV upon completion of the Transaction (alongside other minority investors), with Airtel Africa continuing to hold the majority stake. The Transaction is subject to customary closing conditions.

A statement released by the telecom's operator states that deal will close in two tranches, $150 million invested at the first close. The remaining $50 million will be invested at the second close.

QIA will be entitled to appoint a director to the board of AMC BV and to certain customary information and minority protection rights.

AMC BV is the holding company for several of Airtel Africa's mobile money operations and ultimately is intended to own and operate the mobile money businesses across all of Airtel Africa's fourteen operating countries.

Airtel Africa's mobile money services is a leading digital mobile financial services platform catering to a large addressable market in Africa. It provides users access to mobile wallets, support for international money transfers, loans, and virtual credit cards.

Airtel Africa's mobile money value

This transaction values Airtel Africa's mobile money business at $2.65 billion on a cash and debt-free basis.

In April, global payments provider Mastercard invested $100 million in Airtel Mobile Commerce BV (AMC BV).

The Rise Fund, the global impact investing platform of investment firm TPG, also invested $200 million in Airtel mobile money arm.

Also read: The Rise Fund to invest US$200M in Airtel Africa's US$2.65B mobile money business

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