Airtel Africa unveiled plans to sell a stake of its mobile money business to investment company TPG for $200 million, advancing a broader strategy of cashing-in on its assets.
In a statement, Airtel Africa said TPG’s platform The Rise Fund will take a minority stake in its Airtel Mobile Commerce (AMC) unit, the holding company for several of its mobile money operations, with the operator retaining majority ownership.
It also detailed plans to bring all of its mobile money operations in 14 countries under AMC’s control.
The TPG transaction will value Airtel Africa’s mobile money business at $2.65 billion, with the investment set to be completed in two stages, the first of which is expected to close within the next four months.
Airtel Africa said proceeds will go towards cutting its debt, and financing network and sales infrastructure across its operations.
CEO Raghunath Mandava added the move will help the company “realise the full potential from the substantial opportunity to bank the unbanked across Africa”.
Airtel Africa also said it was in talks with other potential investors regarding options to sell more minority stakes of its mobile money operations.