Mastercard to buy stake in MTN’s R98bn fintech unit

Africa’s biggest wireless carrier - MTNGroup said Mastercard agreed to take a minority stake in its financial-technology business, which the company values at $5.2 billion (R98 billion). Moneyweb BusinessNews

MTN Group, Africa’s biggest wireless carrier, said Mastercard 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. Read MTN’s latest Sens announcement here.

2 billion, equates to 16x trailing Ebitda — well above Airtel Africa’s equivalent 10x. As well as boosting MTN’s see-through valuation, the cash could help the company’s balance sheet, temporarily substituting for dividends from subsidiaries and partly offsetting increased 2023 capital-spending guidance — both affected by forex – John Davies, BI senior telecoms analyst.

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