TPG's Rise Fund to invest $200 mn in Airtel Africa

New Delhi: Investment firm TPG's Rise Fund will invest $200 million (around Rs 1,450 crore) in Airtel Africa's mobile money business, Airtel Mobile Commerce BV, at a valuation of $2.65 billion, Airtel said on Thursday.

With this transaction, Rise Fund is estimated to get 7.5 per cent stake in Airtel Mobile Commerce (AMC) BV which is currently the holding company for several of Airtel Africa's mobile money operations. "A newly incorporated investment vehicle of The Rise Fund will invest $200 million through a secondary purchase of shares in AMC BV from Airtel Africa. The transaction will close in two stages," the statement said.

$150 million will be invested at the first close, once the transfer of sufficient mobile money operations and contracts into AMC BV has been completed, with $50 million to be invested at the second close upon further transfers.

"The proceeds from the transaction will be used to reduce Group debt and invest in network and sales infrastructure in the respective operating countries," the statement said. Airtel Africa Group is also in discussions with other potential investors in relation to possible further minority investments into Airtel Money, up to a total of 25 per cent of the issued share capital of AMC BV, the statement said. "The transaction is the latest step in the Group's pursuit of strategic asset monetization and investment opportunities, and it is the aim of Airtel Africa to explore the potential listing of the mobile money business within four years," Airtel Africa said.

AMC BV is currently the holding company for several of Airtel Africa's mobile money operations. It now intends to own and operate the mobile money businesses across all of Airtel Africa's fourteen operating countries.