Chimera Investment has invested $50m through a secondary purchase of shares from a subsidiary of Airtel Africa in Airtel Mobile Commerce (AMC).
AMC is the holding company for several of Airtel Africa’s mobile money operations and ultimately is intended to own and operate the mobile money businesses across all of Airtel Africa’s 14 operating countries.
Chimera Investment, through its subsidiary Chimetech Holding, now holds a minority stake in AMC alongside the other minority investors, with Airtel Africa continuing to hold the majority stake.
The transaction is a continuation of the Group’s pursuit of strategic asset monetisation and investment opportunities, and it is the aim of Airtel Africa to explore the potential listing of the mobile money business within four years.
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 profits before tax in the full year ended March 31, 2021 and the value of gross assets as of that date, attributable to Airtel Africa’s mobile money businesses were $185m and $668m, respectively.
Airtel Africa is a provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa.
Airtel Africa offers an integrated suite of telecommunications solutions to its subscribers, including mobile voice and data services as well as mobile money services, both nationally and internationally.
Established in 2007, Chimera Investment is an Abu Dhabi-based private investment firm managing a diversified portfolio of listed and unlisted equities on both local and regional markets.
The firm seeks value-creation opportunities where it can invest proprietary capital and keep in-line with its investment philosophy and key guiding principles.
The Group is active in a breadth of industries including real estate, construction, fast-moving consumer goods, food and beverage, hospitality, aviation, healthcare and general investments.
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