Africa’s biggest phone firm sees shares rise 6,6% on deal

Deal done at decent valuation in context of global payments

MTN Group Ltd., Africa’s biggest wireless carrier, said Mastercard Inc. agreed to take a minority stake in its financial-technology business, which the company values at $5.2 billion.

“Signing of the definitive investment agreements is expected to occur in the very near term,” MTN Chief Executive Officer Ralph Mupita said in a statement on Monday.

Africa’s young, tech-savvy population are increasingly using their mobile phones to bridge gaps in services including banking. That’s opened a lucrative and fast-growing space in the fintech sector for wireless carriers. Much of the attention to date has been on mobile-payment systems, with a wave of fast-growing startups including Flutterwave Inc. and Interswitch Ltd. emerging in the industry.

MTN rivals including Airtel Africa Plc, Nairobi-based Safaricom Plc and South Africa’s Vodacom Group Ltd. are all at various stages of transforming from basic voice and text mobile use to digitalization, with a broad aim of separating and monetizing the businesses in the longer term.

Airtel has already brought in Mastercard as an investor in its mobile-money unit. India’s Jio Platforms Ltd., the digital arm of billionaire Mukesh Ambani’s Reliance Industries Ltd., set an earlier precedent by attracting capital from Facebook Inc. and Silver Lake Partners in 2020.

MTN has said previously it plans to raise 25 billion rand ($1.3 billion) from asset sales. Its most recent disposals include the sale and lease-back of its South African mobile-phone towers and a plan to sell some of its West African assets. It also has a stake in New York-listed tower owner IHS Holding Ltd. that it may sell down, although the tower firm’s low trading prices and a dispute with its management has delayed any sale in the near-term.

jeff1993:
Bb

jeff1993:
WOW .... first to comment in over 10 years.... I want to give my vote of thanks

First I want to thank Myself

My second thanks go to my Parents for raising a son like me

My third thanks go to APC miscreants .... may they continue to suffer and those wey wan JAPA, make dem dey decline their Visa application for flimsy reasons. Reasons like they are SS , reason like they dont have oesophagus!!!

Finally I want to thank our Presidooo for making us miss Daddy Bubu ... I pray he gets the wisdom to invade Niger so everywhere go Dabaru for am!!!

Lastly may Mastercard To Buy Stake In MTN’s $5.2 Billion Fintech unit favor me and my family.!!!

Nyne:
MTN milked Nigeria so dry. Without Nigeria, MTN can never be this rich. A foreign company for that matter.

WannaHowzit:


Get off your high horse. MTN doesn't need Nigeria as much as Nigeria needs MTN. It's a global business.

You people like overstating Nigeria. You said Shoprite or DSTV would collapse without Nigeria but Shoprite is doing just fine without your country. Instead you're the ones suffering 🤣🤣🤣

BoldBrainz:


Quite weird how you literally make a life off talking down on Nigeria, while on the "nairaland" platform.

Some of us watch your internet theatrics with bemusement and recognise that the feel you get here, might be your only real adrenaline boost as a South African citizen with very limited liberties.

That said, it is no news that Nigeria is MTN's biggest market. Any change in that status quo, is going to see the shares and fortunes of the telecom giant, plummeting to insane depths. So you and your likes, ought to accord some measure of respect to Nigeria.

That you find us bickering with ourselves and calling out our government over bad leadership doesn't avail you the audacity to join in the fray, especially while you enjoy the services on nairaland for free.

Learn some ethics!

BoldBrainz:


Quite weird how you literally make a life off talking down on Nigeria, while on the "nairaland" platform.

Some of us watch your internet theatrics with bemusement and recognise that the feel you get here, might be your only real adrenaline boost as a South African citizen with very limited liberties.

That said, it is no news that Nigeria is MTN's biggest market. Any change in that status quo, is going to see the shares and fortunes of the telecom giant, plummeting to insane depths. So you and your likes, ought to accord some measure of respect to Nigeria.

That you find us bickering with ourselves and calling out our government over bad leadership doesn't avail you the audacity to join in the fray, especially while you enjoy the services on nairaland for free.

Learn some ethics!

Nyne:
MTN milked Nigeria so dry. Without Nigeria, MTN can never be this rich. A foreign company for that matter.

BoldBrainz:


Quite weird how you literally make a life off talking down on Nigeria, while on the "nairaland" platform.

Some of us watch your internet theatrics with bemusement and recognise that the feel you get here, might be your only real adrenaline boost as a South African citizen with very limited liberties.

That said, it is no news that Nigeria is MTN's biggest market. Any change in that status quo, is going to see the shares and fortunes of the telecom giant, plummeting to insane depths. So you and your likes, ought to accord some measure of respect to Nigeria.

That you find us bickering with ourselves and calling out our government over bad leadership doesn't avail you the audacity to join in the fray, especially while you enjoy the services on nairaland for free.

Learn some ethics!

WannaHowzit:


You also make a life baselessly talking up Nigeria. If MTN losses the Nigerian market it will open shop elsewhere - it's a global business. The world doesn't start and end on your street.

You said Shoprite will collapse without Nigeria but it's posting record profits and opening 250+ new stores. Instead you're the ones left shopping in dirty open-air markets 😂😂😂

Get a life.