Connect with us

Hi, what are you looking for?

E-Financial

Mastercard Invests $200m to Acquire Minority Stake in MTN’s Fintech Business

MTN

Mastercard, financial services firm has concluded the acquisition of a minority stake in mobile operator MTN Group’s fintech business.

In a statement, MTN says it has signed definitive agreements with Mastercard for a minority investment of up to $200 million into MTN Group Fintech at a valuation of $5.2 billion on a cash and debt-free basis.

The mobile operator says the transaction, which is non-categorised in terms of the JSE listings requirements, was originally announced on 14 August 2023 and is subject to customary closing conditions.

MTN Group president and CEO Ralph Mupita recently indicated that the company was looking to sell about a 30% stake in the fintech business.

MTN’s fintech structure includes mobile money platform MoMo, insurance offerings, airtime lending and e-commerce, as well as its network services.

In its interim financial results for the six-month period that ended in June, MTN, Africa’s biggest mobile operator, revealed that its fintech business has been flourishing, with revenue growing by 21.7% year-over-year, primarily due to growth in the wallet (+20.7%), payment and e-commerce (+54.9%) and remittance (+78.9%) industries.

The Mastercard transaction comes as MTN Group is expanding its fintech business, putting the telecoms company on a solid footing, as it prepares to separate its financial services division.

According to the firm, these agreements complement the larger commercial relationship between the telephony
group and Mastercard to support the continued development and growth of technology and infrastructure to drive financial inclusion across the African continent.

“This commercial relationship is a key enabler for the acceleration of our fintech business’ payments and remittance services,” the company says.

“MTN will continue to explore opportunities for other value enhancing partnerships and investments, subject to market conditions, with strategic partners and long-term investors.”

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

ad

You May Also Like

Tech

The maker of ChatGPT on Thursday unveiled its next leap into generative artificial intelligence with a tool that instantly makes short videos in response...

News

Federal Airports Authority of Nigeria, FAAN, has reopened the 3.9km 18R/36L runway at Murtala Muhammed International Airport, MMA, Lagos. The runway, closed in April...

Tech

Sophos announced Thursday that Kris Hagerman has stepped down as CEO of the cybersecurity giant after more than a decade, and a top executive...

News

Enugu State High Court sitting in Enugu, the state capital, has found a man, Okolie Chigozie Michael, 32, guilty of killing his son. He...