A window of opportunity has opened for Airtel Africa via the first tranche of $150 million as it announced the first closing relating to the Airtel Money minority investment transactions with Qatar Investment Authority (QIA) through its affiliate, Qatar Holding, previously announced in July 2021. According to Group Company Secretary Simon O’Hara, the conditions for the first closing have been met, as QIA has invested $150 million in a secondary purchase of shares in AMC BV.
Airtel Africa has now received $375million from three investors, Qatar Investment Authority (QIA), The Rise Fund, and Mastercard.
Balancing proceeds to be received upon completion of the second close amounts to ($125million), rounding up the cumulative proceeds from minority stake sales in Airtel Money to $500 million.
O’Hara also revealed that a further $50 million would be invested at second close upon further transfers of mobile money operations into the unit AMC. He added that the proceeds from this secondary stake sale transaction, along with those of the secondary sale transactions from TPG’s The Rise Fund and Mastercard, will be used to reduce group debt and invest in network and sales infrastructure in the respective operating countries.
The Rise Fund and Mastercard have invested $150million and $75million respectively in a secondary purchase of shares in AMC BV, with a further $50million and $25million to be invested at the second close. Following the closing with QIA, Airtel Africa has now received a total of $375million from these three investors, with balancing proceeds to be received upon completion of the second close amounting to $125million, while the cumulative proceeds from minority stake sales in Airtel Money amounts to $500 million.
Under the AMC shareholders agreement, QIA is now entitled to appoint a director to the board of AMC, as was the case with The Rise Fund, who will have certain customary information and minority protection rights.