Mastercard has acquired a minority stake in MTN’s FinTech business valued at $5.2 billion or R100 billion.
Africa’s biggest mobile phone operator informed investors on Monday that Mastercard signed a memorandum of understanding which provides for a minority investment by Mastercard into its FinTech.
“Following the bespoke process to identify and potentially introduce strategic minority investors into MTN Group FinTech, we executed commercial agreements with Mastercard to support the acceleration and growth of our FinTech business’s payments and remittance services,” said MTN.
Mastercard will pay for the minority stake through cash and debt-free basis.
“Signing of the definitive investment agreements is expected to occur in the very near term as we approach finalisation of customary due diligence,” MTN said.
The company added that the closing of the investment will be subject to customary closing conditions.
The MTN Group FinTech business delivered on ITS rapid expansion plans.
The volume of transactions increased by 37% to 8.3 billion in the first half of the year. These were executed by 61 million active Mobile Money customers.
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