Mastercard Inc. agreed to take a minority stake in the financial-technology business of MTN Group Ltd., Africa’s biggest wireless carrier, sending the telecom company’s stock up the most in three months.
The size of Mastercard’s stake won’t be disclosed until the transaction closes, but MTN said Monday that the deal values the entire fintech unit at $5.2 billion. Chief Executive Officer Ralph Mupita said on an investor call Monday the stake “will go up to a maximum of 30%, but obviously only if that makes sense.”
As part of the commercial agreement, MTN’s business will use Mastercard’s technology infrastructure to expand its payments and remittance services in Africa, Mupita said on a video call earlier on Monday.
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