Why Airtel Money’s $7bn IPO doesn’t include its Nigerian fintech business
When Airtel Money lists on the London Stock Exchange later this month, it will do so without its struggling Nigerian fintech business. A Central Bank of Nigeria (CBN) directive required the mobile money business to transfer its 25% stake in SmartCash, the vehicle through which Airtel operates its Nigerian fintech business, back to Airtel Networks Limited, its Nigerian telecom subsidiary,…
Airtel Money is set to list on the London Stock Exchange on October 14, valued at £5.3 billion ($7 billion), but the Nigerian fintech business SmartCash will not be included in the IPO. A Central Bank of Nigeria directive requires Airtel Money to transfer its 25% stake in SmartCash back to Airtel Networks Limited, the telecom subsidiary.
Airtel Money is exploring ways to bring SmartCash back into the group, but there is no guarantee of timing or outcome as it depends on regulatory approvals. The fintech business is described as part of a pan-African platform operating in 13 African countries with approximately 53 million monthly active users. The Nigerian market is highly competitive, with other players like OPay and PalmPay dominating mobile money transactions.
Despite the challenges, Airtel Money continues to support SmartCash with technical expertise and management services, though the support is not considered material to the group's current operations.
Written by urgent.news from TechCabal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
