Liquid Telecom received a $180 million cash injection from UK development finance institution CDC Group as Africa\u2019s largest fibre-network operator expands broadband infrastructure across the continent.<\/p>\n
The investment will give London-based CDC a stake of almost 10% in Liquid, which is majority owned by Zimbabwe\u2019s Econet.<\/p>\n
The funding will enable Liquid to expand its network in five new countries including Nigeria and Ethiopia, chief executive officer Nic Rudnic said by phone.<\/p>\n
\u201cThis is a capital intensive business,\u201d Econet founder and majority shareholder, Strive Masiyiwa, said on the same call from London. The plan was to seek a longer term equity partner to back expansion into countries that don\u2019t always offer a quick return on investment, he said.<\/p>\n
The deal postpones the need for an initial public offering of Johannesburg-based Liquid, which has about 70,000 kilometers (43,500 miles) of network running from Cape Town to Cairo. However, a long-mooted share sale of the overall Econet group in London remains a possibility, according to Masiyiwa.<\/p>\n
\u201cThe listing option will always be there and we will follow instructions from the shareholders,\u201d he said. \u201cWe are a profitable company and have enough capital and funding for the next few years.\u201d<\/p>\n
Econet\u2019s other subsidiaries include Econet Wireless Zimbabwe Ltd, which is listed in Harare and valued at $5.6 billion.<\/p>\n