Marc Hasenfuss Editor-at-large

Valuing telecoms enterprises can be contentious at the best of times. So it’s fortuitous to be able to scan through the African Rainbow Capital (ARC) Investments prelisting documentation as well as the latest Remgro investor presentation. ARC has a 20% investment in Rain, a "full-service" mobile network operator focusing on data as a primary offering. ARC’s prelisting documentation notes that to date Rain has rolled out more than 1,400 sites and more than 1,500 base stations, and has interconnected all the major metros, spanning over 20 points around SA. It states further that Rain is on track to meet a target of 2,000 sites by the end of 2017; 5,000 by the end of 2018; and 10,000 in the coming years. This infrastructure will eventually facilitate an environment in which open access to the Internet becomes a reality in SA. ARC, which is investing in two tranches, is spending about R1.7bn for a 20% stake. This infers a value of R8.5bn for Rain, which has some way to go before fundame...

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