Qatar Investment Authority (QIA) is, investing a minority stake in its telecommunication’s mobile-money unit, Airtel Mobile Commerce BV (AMC) Ksh.21.7 billion.
The injection values Airtel Africa’s mobile money business at Ksh.282,42 billion on a cash and debt-free basis.
According to a statement by Airtel Africa, QIA will hold a minority stake in AMC BV upon completion of the investment with Airtel Africa.
This is after continuing to hold the majority stake.
The injection will be subject to customary closing conditionsAirtel Africa said in a statement.
Further, the transfer will close in two stages.
Ksh.16.2 billion to be invested at the first close, subject to regulatory filings, and Ksh.5.4 billion to be invested at the second close.
Additionally, the Transaction’s first close will be in August.
That’s on top of the Ksh.32.5 billion Airtel Africa received from selling stakes in the business to private equity firm TPG and Mastercard in April.
Half year results
Nevertheless, Airtel Africa reported a net profit of Ksh.15.4 billion for the half-year ended June 30 in its financial results.
This was on the back of growth in data and mobile money revenues and stable finance costs.
According to Airtel, this was strong double-digit growth across voice (26.0%), data (37.4%).
As well as mobile money (53.7%), and across all our regions.
Airtel Africa’s chief executive officer Raghunath Mandava on Thursday said that the first quarter of last year was impacted, by the start of Covid.
Our Q1’22 revenue growth rates for the Group, service segments, and reporting regions were all ahead of Q4’21 trends.said Mandava.
Airtel Africa provides its telecommunications and mobile money services in 14 countries in Africa.
Moreover, it is primarily in East, Central, and West Africa.
On the other hand, AMC BV is the holding company for several of Airtel Africa’s mobile money operations.