Zimbabwean investor group Brainworks Capital Management remains interested in the domestic telecoms sector, despite withdrawing its offer on Telecel Zimbabwe.
The company announced it had closed a US$35m funding round with Red Rock Capital and Blue…
Zimbabwean investor group Brainworks Capital Management remains interested in the domestic telecoms sector, despite withdrawing its offer on Telecel Zimbabwe.
The company announced it had closed a US$35m funding round with Red Rock Capital and Blue Air Capital, aimed at strengthening existing media investments and entering the domestic telecoms sector.
The move comes days after backpedalling out of its agreed US$20m offer to buy 40% of Vimpelcom-controlled Telecel, because of a lack of support among empowerment group owners.
CEO George Manyere told local newspaper The Herald that Brainworks nevertheless remained interested in the telecoms space because “there is value”, adding that it would eye mobile, fibre and infrastructure opportunities.
The Zimbabwean government late last month cancelled Telecel’s licence, accusing it of failing to pay its US$137.7m renewal fee due in 2013 – while Telecel insists it had agreed a seven-year repayment schedule with regulator POTRAZ. The government has said it would likely buy the company, with a view to selling it to a new owner.
A spokesperson for Brainworks was not immediately available for comment.
South African telecoms leader MTN, in the meantime, is on the lookout for an acquisition in Zimbabwe, having looked at Telecel back in 2009, according to local reports.
Telecel is owned by Vimpelcom unit Global Telecom Holding (60%) and local consortium Empowerment Corporation (40%). The government has said that the company’s ownership should be 51% domestic.
