Rohit Kumar
Global Financials/Thematics
2 February 2021
Published by
Tellimer Research
Airtel Africa: Stake sale could unlock Airtel Money’s value; re-rating possible
Rohit Kumar
Global Financials/Thematics @
Tellimer Research
Rahul Shah
Head of Financials Equity Research
@
Tellimer Research
2 February 2021
- Airtel Africa plans to sell a minority stake in its fast-growing digital payments business, Airtel Money
- This could unlock value by giving investors access to a structural African growth story
- Airtel Money is growing at over 30% pa. Based on peer multiples, it could be worth cUS$3bn
Rohit Kumar
Global Financials/Thematics
2 February 2021
Published by
Tellimer Research
According to recent news reports, Airtel Africa (AAF LN) is planning to sell a minority stake in its digital payments business, Airtel Money, which provides mobile wallets to 21.5mn users in 14 African markets. The transaction will raise cash to fund the development of this fast-growing division.
In this report, we examine Airtel Money’s KPIs, assess its contribution to Airtel Africa, and compare it with EM payments peers. We also estimate Airtel Money’s valuation, and compare this with the current market cap of the listed parent company.
Subscribe to Tellimer Insights Pro for the full in-depth analysis.
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