said Ralph Mupita, MTN Group President and CEO.
Financial services company Mastercard has completed the acquisition of a minority stake in the fintech business of mobile phone operator MTN Group.
MTN said in a statement that it has entered into a definitive agreement with Mastercard for a minority investment of up to $200 million (R3.8 billion) in MTN Group Fintech, valued at $5.2 billion (R99 billion) on a cash-free, debt-free basis. Announced. .
The mobile operator said the transaction is not classified in terms of JSE listing requirements, was originally announced on August 14, 2023, and is subject to customary closing conditions.
MTN Group President and CEO Ralph Mupita recently indicated that the company is considering selling about a 30% stake in its fintech business.
MTN's fintech structure includes mobile money platform MoMo, insurance products, airtime financing, e-commerce, and its network services.
MTN, Africa's largest mobile communications operator, reported a 21.7% year-on-year increase in revenue due to strong performance in its fintech business, mainly due to global economic growth, in its interim results for the six months ended June. revealed. Wallets (+20.7%), Payments and e-commerce (+54.9%), Remittances (+78.9%) industries.
The deal with Mastercard comes as MTN Group prepares to spin off its financial services division, expand its fintech business and consolidate its telco foothold.
According to the company, these agreements complement the larger commercial relationship between Telephony Group and Mastercard and support the continued development and growth of technology and infrastructure to advance financial inclusion across the continent.
“This commercial relationship is a key enabler for the acceleration of payment and remittance services for our fintech business,” the company said.
“MTN will continue to explore other value-enhancing partnerships and investment opportunities with strategic partners and long-term investors, depending on market conditions.”