Mastercard acquires minority stake in MTN Group Fintech

Mastercard acquires minority stake in MTN Group Fintech

MTN struck a deal to have financial powerhouse Mastercard invest US$200 million to take a minority stake in the operator’s fintech unit. 

MTN did not state how much of a stake Mastercard will take for its investment into MTN Group Fintech, the transaction was made at a valuation of US$5.2 billion on a cash and debt free basis. The deal is now subject to customary closing conditions. 

The operator added the agreement was a complement to a larger relationship between it and Mastercard, to continue the support and development of financial inclusion in Africa.   

“This relationship is a key enabler for the acceleration of our fintech business’ payments and remittance services,” said MTN. 

“MTN will continue to explore opportunities for other value enhancing partnerships and investments, subject to market conditions, with strategic partners and long-term investors”.

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