African Rainbow Capital (ARC), an investment firm founded by business mogul Patrice Motsepe, has acquired 20% stake of wireless broadband operator Rain, previously known as Wireless Business Solutions.
“We are delighted to partner with ARC and look forward to the strategic value they bring to the team”, Paul Harris, Rain Chairman, said in a statement on Friday.
“In addition, they enhance our already significant BEE (black economic empowerment) ownership credentials”.
ARC is a fully black-owned and controlled investment company with stakes in various financial services businesses.
To date, Rain has rolled out over 1 000 sites and 1 500 base stations and is on track to meet its target of 2 000 sites by the end of the year and 5 000 within three years.
“We focus on South African and African businesses that deliver exceptional returns on equity, and it is exciting to invest in a company that is at the start of its growth trajectory”, says Johan van Zyl, ARC co-CEO.
“There is great demand in our country for fast, reliable and affordable data coverage and Rain promises to deliver just that.”
Rain has recently entered into an agreement whereby Internet Solutions and its partners will provide clients with wireless broadband services powered by the Rain network.
The LTE Advanced network, referred to as ‘fibre-in-the-sky’, is ideally positioned to be a pioneer in the future rollout of 5G networks.
“The additional equity capital raised from ARC, over and above the funding already in place, ensures that we have the capital to achieve our aggressive rollout targets over the next three years,” said Rain CEO, Duncan Simpson-Craib.
Michael Jordaan, director, and shareholder of Rain says Rain’s key objective is to establish a cutting-edge LTE-A fixed and mobile network, designed to meet growing consumer demand.
“Driven by innovative thinking and the very latest technology, Rain will provide simple, easy and transparent access to data, connecting the people of South Africa to the limitless possibilities of the digital world. The aim is to eventually create an environment where ‘open access’ to the Internet becomes a reality in this country, with the best possible quality and speeds we can deliver, at affordable rates for all.”