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Investing.com -- Jumia Technologies AG (NYSE:JMIA) stock jumped 6% following a report from Bloomberg that the African e-commerce giant has attracted takeover interest from Mauritius-based Axian Telecom (BCBA:TECO2m).
According to Bloomberg, citing people familiar with the matter, Axian Telecom recently raised $600 million to refinance its debt and potentially fund an acquisition of Jumia. The telecommunications company, which primarily operates in Africa, is eyeing Jumia as part of a strategy to expand its continental footprint. Jumia currently has a market value of approximately $500 million.
A successful deal could result in Jumia being delisted from the New York Stock Exchange, where it has traded since its 2019 IPO. However, sources cautioned that negotiations remain ongoing and may not lead to a final agreement.
Jumia, founded in Nigeria in 2012, has established itself as Africa’s leading e-commerce platform. A potential combination with Axian could create synergies for both companies looking to strengthen their presence across African markets.
The reported interest comes as Jumia continues to navigate the challenging landscape of e-commerce in Africa, where logistics and payment infrastructure remain significant hurdles despite the continent’s growing digital economy.
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