Airtel Sells $500m Worth Of Stake In Mobile Money Business To Settle Debt
Airtel Africa Plc said it has received additional $125m from investors in the second phase of the sale of minority shares in its subsidiary, Airtel Mobile Commerce (AMC) BV, a business entered to settle the Group’s debt burden.
The telecom provider said the amount was raised by TPG’s the Rise Fund, Mastercard and the Qatar Investment Authority.
The Group said it has now received $500m from investors in total.
Airtel stated, “With the conditions for second closing having now been met, TPG and QIA have each invested a further $50m, and Mastercard a further $25m, in the secondary purchase of shares in AMC BV from a subsidiary of Airtel Africa.
“With these second closings, Airtel Africa will have received a total of $500m cumulative proceeds from the minority stake sales in Airtel Money from the three investors.
“As previously reported, the proceeds from these secondary stake sale transactions will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries.”
As of March this year, Airtel’s current liability was $1.46bn.
A breakdown of the amount shows that $342m was the Group’s borrowing and $1.12bn being current maturities of long-term borrowings.