ABN - South African billionaire Patrice Motsepe’s African Rainbow Capital (ARC) has purchased a 20% stake in Rain, a fixed and mobile data network operator.
Rain, formally known as Wireless Business Solutions (WBS), is building an LTE-advanced wireless broadband network in South Africa, and has rolled out over 1,000 sites and 1,500 base stations in the last five years.
The company aims to have 2,000 sites by the end of the year, an additional 5,000 within three years, and will use the additional capital raised from financial services firm ARC to achieve this target.
Johan van Zyl, ARC’s co-chief executive said: “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.”
ARC will list on the Johannesburg Securities Exchange (JSE) and the A2X Markets, a new stock exchange which the company holds a 20% stake in, later this year in an initial public offering (IPO).