Strive Masiyiwa concludes R2.6-billion funding deal with CDC Group
By Staff Writer | 03 Apr 2019 at 15:26hrs
Liquid Telecom has concluded a $180-million (R2.6 billion) investment from UK development finance institution CDC Group.
"The investment will enable Liquid Telecom to further expand its fibre footprint and to broaden its data centres and cloud services product portfolio across Africa serving wholesale, enterprise, and retail customers," said Liquid Telecom in a statement.
The investment into the Econet-owned Liquid Telecom, which was originally announced in December, provides the CDC Group with a stake of nearly 10% in Liquid Telecom.
"This is a capital-intensive business," Econet founder Strive Masiyiwa said in December.
He added that the plan was to seek a longer-term partner to back expansion into countries that don't always offer a quick return on investment.
The deal is also set to allow Liquid Telecom to postpone its initial public offering.
However, according to Masiyiwa, an IPO is still a possibility in the future.
"The listing option will always be there and we will follow instructions from the shareholders," said Masiyiwa.