Airtel Africa had been looking to sell off some assets so that it can have more cash at hand to settle debts and improve operations. Thus, the London-listed company decided to sell off some stakes in its mobile money business.
This arm of the business had been helping to drive financial inclusion in areas of Africa, especially for the unbanked. As of the time of this writing, the company has found a willing investor in The Rise Fund which will be investing $200 million into the business. In return, the buying company will get equivalent share exchanges of the company.
The best thing about this idea is that Airtel Africa still gets to hold a majority share in the business so they can keep going on with the plans that they had for the unit. Likewise, Airtel Arica has now achieved its aim to raise some cash and will, thus, be able to pay off some of its debts while driving better penetration of the network in parts of Africa where more help is needed.
The deal will be completed in two parts. The first $150 million will be invested at first and a next $50 million will hit when the deal closes.
