MTN Group President and Chief Executive Officer Sifiso Dabengwa said MTN, Millicom and Rocket Internet would each become 33.3% shareholders in AIH.
“We are excited to engage in a strategic partnership with Rocket Internet and Millicom to develop online ventures across the fast growing internet markets of Africa. Rocket Internet’s proven successful track record, coupled with Millicom and MTN’s leading mobile telecommunications position, will allow the partnership to capture the growth potential of the digital media space across our footprint in the region,” he said.
Commenting on the agreement, Millicom President and CEO Hans-Holger Albrecht said: “We are pleased to welcome MTN as a strategic partner to accelerate the growth of our online alliance in Africa. It is a significant vote of confidence in its future. Between us we have more than 220 million mobile customers in the continent with very limited overlap.
MTN is the leader in Nigeria and South Africa, the largest markets for AIH currently, while Millicom contributes through its leading positions in our markets, combined with one of the most innovative product offerings,” he said.
Albrecht said the investment in AIH was in line with MTN’s strategy of bringing the digital world to customers, adapting to their rapidly changing needs and delivering a consistent end-to-end user experience.
The partnership brings together Rocket Internet’s expertise in developing successful global internet business models, and Millicom and MTN’s leadership position and unique knowledge of the local telecom markets.
“The strategic partnership between Rocket Internet, Millicom and MTN is unique and will enable AIH to reach more consumers with better services. We feel very strong about AIH’s existing and future ventures in Africa and look forward to working with our new partner,” said Oliver Samwer, Co-Founder of Rocket Internet.
The partnershipis expected to create additional synergies for MTN in its core business. The investment is subject to regulatory approval, and the transaction is expected to close during the second quarter of 2014.
“MTN will continue to pursue digital business adjacencies as one of its key strategic priorities to drive growth and value to our customers across Africa”, said Dabengwa.