SOUTH AFRICA TELECOMS SECTOR TARGETED WITH $80M EQUITY FUND

 

Johannesburg, South Africa

 

November 25, 2009

 

Allotting investments between $5m and $15m

 

Delta Partners, the largest telecommunications advisory and investment firm in Africa and the Middle East, has announced that it is opening up its $80m (approximately R705m) emerging markets equity fund to the South African telecoms sector.

 

The equity fund's availability in South Africa comes just four months after Delta Partners launched its regional headquarters in Johannesburg, in order to expand its services further into the African continent.

 

"Delta Partners is looking for investment opportunities with a number of different types of companies in the South African telecoms arena," says Kristoff Puelinckx, Delta Partners' managing partner.

 

"These may include established telecoms players, new industry entrants, alternative telecom operators and industry suppliers that have proven track-records, solid business models and existing cash flows," he says.

 

"The fund targets players in the telecom and media space who are taking advantage of the opening up of the value chain - companies that the established players are turning to in order to make themselves more efficient or more focused on their core activity."

 

The equity fund's typical investments will be anywhere in the region between $5m and $15m, depending on the nature of the organisation and its particular specialisation in the telecoms value chain.

 

"We are looking to make one or two investments in South Africa in the next six months and to then spread the equity fund further afield into the rest of Africa," Puelinckx says.

 

"Having recently concluded successful investments in Northern Africa, the Middle East, and Russia, we want to expand our investment reach, with the possibility of raising funds for a second equity fund in the near future."

 

Puelinckx says that there is an unprecedented amount of development taking place in the African telecoms market, which will see the continent's communications and bandwidth capabilities increase substantially over the next five to ten years.

 

"With the continued liberalisation of the local and regional telecoms markets, more players are expected to enter this market, giving rise to increased competition and more affordable access to communications technology for businesses and consumers across the continent."

 

According to Puelinckx, the South African telecoms market is quite mature in relation to those in many other developing markets, and opportunities exist for a number of players - aside from the network operators - to develop successful businesses.

 

"There is currently substantial investment being made into laying cables and providing infrastructure to enable more bandwidth across Africa. But we are yet to see the boom in this region's broadband market. It is definitely still coming, and its success will be centred on service provision, but also specialised services for high value markets, such as the corporate sector."

 

"This is where Delta Partners can add a vast amount of value," he adds. "We operate in 25 countries in the Middle East and Africa and have over one hundred thirty employees who are directly engaged with players in the telecoms market. This gives us a distinctive understanding of the overall telecoms market and its nuances."

 

"When we invest in an organisation, we do not just invest in it financially. We become involved from an operational perspective - at the board level - as well as apply our experience, knowledge and industry expertise to help them grow their businesses. This, in turn, ensures that we realise the returns we expect from the investment," Puelinckx concludes.

 

Eligible telecoms companies are invited to contact Delta Partners with proposals on equity@deltapartnersgroup.com

 

 

About Delta Partners

 

Delta Partners is the leading TMT advisory and investment firm in emerging markets. With more than 160 professionals the firm operates across 50 markets in the Middle East, Africa, Eastern Europe and Emerging Asia. Delta Partners provides three synergistic services: management advisory, corporate finance and investments from its offices in the UAE, Bahrain, South Africa, Spain and Singapore. Delta Partners delivers tangible results to its clients and investors through its exclusive sector focus on telecom, media and technology, and a unique approach to services, combining strategic advice and a hands-on pragmatic approach.

 

For further information please contact:

 

Mia Mutic
Delta Partners
+971 (4) 369-2999
mmu@deltapartnersgroup.com