Nanobank, a lending business formed by combining its micro-lending business with Mobimagic’s point-of-sale business, sold out most of its business in Asia to Opay in exchange for shares for an undisclosed private equity firm. For Opera, the consumer internet brand to increase its stakes in Opay, it sold the 42% quota it owned in Nanobank for $127.1 million.
Priorly, opera and the third-party buyer settled the internet brand’s receivable from sales of Nanobank for Opay shares instead of quarterly cash payments that would have been paid through Q2 2026. Hence, increasing Opera’s stake in Opay from 6.4% to 9.5%. By choosing Opay shares instead of cash, Opera settled for $35.9 million less than the book value of its investment in Nanobank, leaving the internet brand with a net fair value of $76.3 million as of year-end 2022.
The company statement read, “The settlement was based on the valuation applied in the transaction as well as an estimate for the value of Nanobank’s remaining business. Opera has stepped into the relevant provisions of the sales agreement, including potential adjustments depending on the business performance. Consequently, Opera will report the value of its increased OPay ownership based on a weighted set of scenarios for the performance of the sold business.”
Although Opay is a newly founded corporation that offers a range of financial services, including mobile payments, loans, and investment products, Opera’s decision to opt for its shares proves it has confidence in Opay’s continual development. Although the Company showed its ownership as ‘held for sale’, meaning that it may not hold its stake in Opay for the long term.
For further development of Opay, it has established a firm presence in Nigeria where it competes with other Fintechs like Flutterwave and Paystack, as well as expanding into other African markets like Kenya and Egypt. The increased investment in Opay is a positive development for both companies as it provides the opportunity to benefit from each other’s partnership. The alliance between them could lead to new opportunities for growth and innovation in the FinTech sector in Africa.
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