Airtel books Ksh.41.6 billion from sale of mobile money stake

Airtel Africa has received Ksh.41.6 billion ($375 million) from the sale of a minority stake in its mobile money platform- Airtel Money.

The proceeds are part of the first closings of the stake sell and include investments of Ksh.16.7 billion ($150 million) by the Rise Fund.

Mastercard and Qatar Holding LLC have on their part invested Ksh.8.3 billion ($75 million) and Ksh.16.7 billion ($150 million) in the secondary purchase of shares in Airtel Mobile Commerce BV, a subsidiary of Airtel Africa.

The three investors are expected to take their investments in Airtel Money to Ksh.55.5 billion ($500 million) upon the second close of the transactions.

Airtel Africa is still expected to hold the majority stake in the mobile money business which it values at Ksh.294.2 billion ($2.65 billion).

The sale of a minor stake in Airtel Money is a continuation of Airtel Africa pursuit of strategic asset monetisation and investment opportunities.

Proceeds from the transaction will be deployed in reducing Group debt and investments in network and sales infrastructure.

Moreover, Airtel Africa has been selling part of its infrastructure including the sale of telecommunication tower assets in Rwanda and Tanzania.