MasterCard buys $200m stake in MTN Group Fintech
MasterCard has sealed a definitive agreement with
MTN, for a minority investment of up to $200 million in MTN Group Fintech,
valued at $5.2 billion on a cash and debt-free basis.
The Johannesburg Stock Exchange (JSE)-listed MTN Group stated
today that the deal, which is non-categorised under the JSE Listings
Requirements, was originally announced on August 14, 2023, and is subject
to customary closing conditions.
In a statement, MTN Group stated: “These agreements
complement the larger commercial relationship between the 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.”
Africa's largest telecom carrier also said that, subject to
market conditions, it will continue to explore opportunities for other “value
enhancing partnerships and investments with strategic partners and long-term investors”.
The transaction comes as MTN Group is scaling its fintech
business, as it prepares to spin off the financial services company.
MTN Group increased benefits in its overall fintech revenue
in the nine months ending September 30 (third quarter), boosted by wins in
Ghana, Uganda, Benin, Cameroon, and Rwanda.
The five countries are crucial fintech markets for MTN Group,
which aspires to build the continent's largest and most lucrative fintech
ecosystem.
During the third quarter results presentation, MTN reported that fintech revenue continued to grow and climbed by 22.1% year on year
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