Chimera Investment LLC Invests $50m in Airtel Africa’s Mobile Money Business

Airtel Africa, a leading provider of telecommunications and mobile money services, has announced the introduction of Chimera Investment LLC as an additional investor in Airtel Mobile Commerce BV (‘AMC BV’).

Chimera Investment invested $50 million in AMC BV, a subsidiary of Airtel Africa Plc, through shares acquisition from the secondary market. AMC BV is the holding company for several of Airtel Africa’s mobile money operations; and ultimately is intended to own and operate the mobile money businesses across all of Airtel Africa’s fourteen
operating countries.

A document available on the website of Nigeria Exchange Limited (NGX) reveals that Chimera Investment LLC, through its subsidiary Chimetech Holding Ltd., now holds a minority stake in AMC BV alongside other minority investors. However, Airtel Africa remains the largest shareholder.

The document signed by Simon O’Hara, Airtel Group secretary buttressed that the transaction is a continuation of the Group’s pursuit of strategic asset monetisation and investment opportunities. Also, in line with Airtel Africa plans to explore the potential of listing its mobile money business within four years.

The proceed from the Transaction is to be used to reduce Group debt and invest in network and sales infrastructure in its respective operating countries. The profits before tax in the full year ended 31 March 2021 and the value of gross assets as of that date, attributable to Airtel Africa’s mobile money businesses were $185m and $668m, respectively.

The investing firm, Chimera Investment (LLC), is a part of Abu Dhabi Royal Group. It is a private investment portfolio of listed and unlisted equities in both local and regional markets. The firm seeks value creation opportunities where it can invest proprietary capital and keep in line with its investment philosophy and key guiding principle.

The group has a diversified conglomerate of companies comprising over 60 entities and employing 20,000 employees. The group is active in a breadth of industries including real estate, construction, fast-moving consumer goods, food and beverage, hospitality, aviation, health care and general investment.