Pan African Communication Network (Paconet), which is 39.5% owned by JSE-listed Accord Technologies, has secured up to R100 million funding for an Internet-driven pan-African data transmission network.
The funding is coming from the AIG African Fund Infrastructure Fund, a Mauritian-based limited-life company which invests in African infrastructure-related companies and projects.
Established in March last year, the fund has about $400 million available for investment
The American International Group is the principal sponsor of the fund, and former president Nelson Mandela serves as chairman of the advisory board.
Other major investors in the fund are the International Finance Corporation, the African Development Bank and Sheikh Mohammed Hussain al-Amoudi.
The fund will make up to $14 million available to Paconet in return for 30% of its equity. The deal values Accord`s shareholding at up to $18.2 million.
The first tranche of $4 million has been transferred, with further capital calls to be made in line with capital expenditure requirements.
Accord, in terms of the shareholders` agreement, will make up to $1 million available to Paconet, of which the first tranche of $288 000 has been paid. Accord says it has secured funding for its investment.
"Recent advances in Internet protocol (IP) telephony, coupled with global telecommunications deregulation, have created an opportunity for emerging multinational carriers to exploit cost advantages over existing monopoly carriers in the $700 billion worldwide telecommunications market," Accord says.
"Paconet has acquired or is acquiring licences in various African countries for the provision of bandwidth and transmission of data.
"The company is at various stages of deployment in Botswana, Angola, Swaziland, the Democratic Republic of Congo and SA."
It adds that the company will install its own infrastructure that will connect to its partners` facilities in the US and European Union.
Paconet, which is registered in Mauritius, is not expected to be profitable in the current financial year to 31 December 2001.
Share
