Airtel Africa Plc has announced an investment to the tune of $50 million by Chimera Investment LLC in Airtel Africa’s mobile money business.

This announcement comes after the telecommunications company secured an Approval-in-Principle from the apex bank to operate their mobile money service as a super-agent in the country. Chimera Investment LLC is announced as an additional investor in Airtel Mobile Commerce BV also, (AMC BV).

The investment of Chimera will take place through a $50 million secondary purchase of shares from a subsidiary of Airtel Africa Plc. Airtel Mobile Commerce, which is the holding company for several of Airtel Africa’s mobile money operations is intended to own and operate the mobile money businesses across the 14 operating countries.

Chimera’s investment through its subsidiary, Chimetech Holding Ltd, officially makes it a minority stakeholder in AMC BV along with other minority investors as Airtel Africa maintains its position as majority stakeholder.

Furthermore, the disclosure states that the transaction reflects the Group’s objective in the pursuit of strategic asset monetization and investment opportunities. The statement read, “The Transaction is a continuation of 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.”

In addition, the Group states that the proceeds from the transaction will be directed towards reducing the Group’s debt and investment in network and sales infrastructure in all fourteen (14) operating countries.

Key Points

• Chimera Investments LLC joins TPG’s The Rise fund, Mastercard and QIA as minority stakeholders in Airtel Money Commerce BV.
• Airtel Africa earlier this year, announced second closings of minority investments in Airtel Money Commerce by TPG’s The Rise Fund, Mastercard, and QIA, where TPG and QIA 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
• Prior to the second closings, Airtel Africa had received a total of $375 million from secondary sale transactions to the three investors – QIA, TPG and Mastercard. It was agreed that the balance of $125 million from the three investors will be received upon completion of the second closing.