African Rainbow Capital (ARC), the South African financial-services firm founded and controlled by South African billionaire Patrice Motsepe, has reportedly acquired a 20% stake in Rain, a fixed and mobile data network operator. Rain aims to build the next-generation LTE-Advanced network in South Africa and has rolled out over 1, 000 sites and 1, 500 base stations over the last five years, and is on track to meet its target of 2,000 sites by the end of the year and 5, 000 within three years.
Chairman of African Rainbow Minerals Patrice Motsepe addresses the Co-Chairs press conference on the second day of the World Economic Forum meeting on Africa, entitled, ‘Then and now: Reimagining Africa’s Future’ in Cape Town on June 4, 2015 – “It is exciting to invest in a company that is at the start of its growth trajectory. There is great demand in our country for fast, reliable and affordable data coverage and Rain promises to deliver just that,” said Van Zyl. The terms of the deal were not disclosed.
Rain, formerly called Wireless Business Solutions, plans to use the additional capital raised from ARC to achieve its aggressive roll-out targets over the next 3 years. ARC’s investment in Rain comes as the financial services firm prepares to list on the Johannesburg Securities Exchange later this year in an IPO in a bid to raise more than $200 million according to several news reports.
African Rainbow Capital’s is a fully integrated diversified financial services business in South Africa that focuses on both financial services and compelling private equity placements. The company, which was founded by Patrice Motsepe, has investments in health insurance, mortgage services, real estate and stock brokerage among other assets.