Airtel Africa secures $50m in investment as it withdraws from Nigerian auction

Segun Ogunsanya 16.9.jpg

Airtel Africa confirms that Chimera Investment has investment $50 million in Airtel Mobile Commerce (AMC BV), through shares from one of its subsidiaries.

AMC BV is the holding company for several of Airtel Africa’s mobile money operations with the intention to own and operate the mobile money businesses across all of Airtel Africa’s fourteen operating countries.

As a result of this deal, Chimera Investment, through its subsidiary Chimetech Holding, now holds a minority stake in AMC BV alongside the other minority investors, while Airtel Africa retains its majority stake.

The news forms part of Airtel's 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 of the deal will be used to reduce Group debt and invest in network and sales infrastructure.

In tandem, Segun Ogunsanya (pictured), group chief executive officer of Airtel Africa, commended the Nigerian Communications Commission (NCC) for the completion of a transparent 5G auction on December 13 2021.

At the same time, Ogunsanya confirmed that the Nigerian subsidiary of the company pulled out of the auction after submitting its final bid of $270 million.

“The business case for 5G across all sub-Saharan markets is evolving, and we remain committed to driving broadband capacity in our various markets. We will continue to closely track the 5G ecosystem over the next several years, in particular the availability of affordable 5G devices and relevant use cases," said Ogunsanya.

“Airtel Africa retains ample capacity, spread across various spectrum bands, in Nigeria and its other markets, to continue to meet the growing data demands of our customers for many years to come, with several potential routes available to the business to deliver even greater capacities, cost-effectively, in the long run.”