Airtel Africa has revealed its plans to raise cash by selling a minority stake in Airtel Money – its mobile financial platform. According to Business Daily, this move is part of the company’s strategy to sell some assets.
“We are actively pursuing the sale of the remaining owned tower sites that sit across several of our operating countries and the group is in discussions with various potential investors in relation to possible minority investments into Airtel Money,” reads a trading update from the telco.
“Discussions are ongoing between the parties and there can be no certainty that a transaction will be concluded or as to the final terms of any transaction.”
Airtel did not disclose the amount it expects to raise. However, its revenues reached $291 million across its markets in 2020.
“Our mobile money customer base reached 21.5 million, up 29 percent over the previous period, with Airtel Money customers now representing 18 percent of our total customers, an increase of 2.5 percentage points,” the multinational said.
“Mobile money average revenue per user (ARPU) was up 5.1 percent to $1.7 (Sh187), driven by the increase in transaction values and a higher contribution from merchant payments, cash out, person-to-person transfer and recharge of mobile services through Airtel Money.”
Airtel Africa Renews Spectrum License in Nigeria
Airtel Africa has paid N71.6 billion to the Nigerian Communications Commission (NCC) to renew its 900 and 1800 MHZ spectrum licence for the next 10 years.
Chief Executive Officer of Airtel Africa, Raghunath Mandava says that their current license was due to expire at the end of November 2021. He goes on to say that the Nigerian market is the “largest market and we remain focused on bridging the digital divide and expanding our broadband capability in the country.”
“On behalf of Airtel Nigeria and the Group, I would like to thank both the government of Nigeria and the NCC for their cooperation and support in this important process.”
The new license is expected to remain valid until 30 November 2031.