Payment technology company Mastercard has made a minority investment of $200 million (R3.8 billion) into MTN’s financial-technology business.
The telecommunications provider said that it had signed definitive agreements detailing the transaction with Mastercard yesterday, 5 February 2024. The proposed deal was first announced last August and is subject to customary closing conditions
It added that the transaction values MTN Group Fintech at $5.2 billion (R98 billion) on a cash and debt-free basis, meaning that Mastercard is taking a 3.8% share in the company.
“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,” MTN said.
“This commercial relationship is a key enabler for the acceleration of our fintech business’ payments and remittance services.”
“MTN will continue to explore opportunities for other value-enhancing partnerships and investments, subject to market conditions, with strategic partners and long-term investors.”