Telecommunications group MTN and Mastercard have signed a definitive agreement for a minority investment of up to $200-million into MTN Group Fintech, at a valuation of $5.2-billion on a cash and debt-free basis.
This followed the August 2023 signing of a memorandum of understanding between the parties.
The transaction, which is non-categorised in terms of the JSE listings requirements, is subject to customary closing conditions.
“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 in an update to shareholders on Tuesday.
“This commercial relationship is a key enabler for the acceleration of our fintech business’ payments and remittance services.”
MTN concluded that it would continue to explore opportunities for other value-enhancing partnerships and investments, subject to market conditions, with strategic partners and long-term investors.