Unbanked Nigerians, Others Push N82.2billion Out of Qatari Firm into Airtel Mobile Money
- Airtel Mobile Commerce sold a minority stake to Qatar Holding, a company affiliated with the Qatar Investment Authority
- The share acquisition by Qatar Holding is worth N82.2 billion, and it's one of many deal, as Mastercard and The Rise Fund have previously invested
- Airtel Mobile Commerce is a mobile money business which is worth $2.65 billion in cash, and also free of debt as it exchange stake for funds
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Qatar Holding LLC has acquired a minority stake in Airtel Mobile Commerce BV, a subsidiary of Airtel Africa. The deal is one of many which the telco has sealed
The investment into Airtel Mobile, which is the mobile money business of the telecoms company, is worth $200 million, and has increased the value of the firm to $2.65 billion debt-free.
Details of the deal shows that the investment by the Qatari firm - which is an affiliate of Qatar Investment Authority - will be done in two tranches, with the first bein $150 million, while the second tranch will be $50 million.
Source: Getty Images
Why Qatar Holding LLC invested in Airtel mobile money
Mansoor bin Ebrahim Al-Mahmoud, the chief executive officer of QIA, said the firm is delighted to contribute to the promotion of financial inclusion in Africa, with Airtel mobile money being the vehicle.
The company is taken by the ability of Airtel mobile money to facilitate trade for unbanked or underbanked Africans without the need of traditional financial services.
Also commenting on the deal is Raghunath Mandava, CEO of Airtel Africa, who stated that QIA has joined the mobile money's portfolio investors, which includes Mastercard and The Rise Fund, an affiliate of TPG.
Mastercard had previously invested $100 million in Airtel Mobile money, while The Rise Fund made an investment worth $200 million.
Mandava said the investment will enable the company unravel the opportunity in Africa's unbanked community.
Quest Electricity acquires Nigerian electricity asset
In related investment news, Quest Electricity Limited acquired Yola Electricity Distribution Company in a billion-naira deal amid security concerns.
Quest Electricity paid N19 billion to acquire the national electricity asset. The company also agreed to invest N28 billion in the Yola Disco while the deal last.
Adamu Mele, The chairman of Quest Electricity, Adamu Mele, admitted security issue in the area, but stated that work will be put in place to curb it.
Source: Legit.ng
