Mastercard to take minority stake in fintech arm of South Africa’s MTN

Mastercard has agreed to purchase a minority stake in the fintech division of MTN Group, Africa’s largest cellphone provider, which it values at $5.2 billion. The signing of the formal investment agreements will likely occur very soon as both parties near the end of the regular due diligence process; the investment will be closed subject to usual closing conditions, MTN announced in a statement on the company’s half-year financial performance posted on Monday.

The announcement sent MTN shares 7 per cent higher by lunchtime on the Johannesburg stock market on Monday.