Paratus covers N$114 million infrastructure investment through rights issue and own income
Through its NSX-listed control shareholder, Nimbus Infrastructure Limited, Paratus Namibia raised N$50 million to partly fund its aggressive N$114 million investments in the current financial year for its Fibre to the X (FttX) roll-out and the expansion of its 4G LTE network.
Paratus Africa Chief Executive, Barney Harmse, said Paratus continues to show a strong growth profile despite the challenging economic environment in Namibia. “The board of Paratus Namibia approved a capital expenditure budget of N$114 million for the current financial year with N$56.5 million earmarked for the fiber to the X (FttX) roll-out and N$24.4 million for LTE network assets.”
As part of the transaction, Nimbus subscribed for 24,398 ordinary shares to be issued from Paratus Namibia’s authorised shares.
The aggregate amount to be raised by Paratus Namibia in terms of the rights issue will be contributed as share capital in by Nimbus and the Paratus Group, pro rata to their respective shareholdings in Paratus Namibia. Nimbus’s shareholding in Paratus Namibia will remain unchanged at 51.4%.
Harmse is confident that Paratus Namibia can fund its budgeted capital outlay from its free cash flows and the rights issue proceeds.
Paratus Namibia continues to invest aggressively in telecommunications infrastructure, including urban fibre infrastructure and 4G LTE connectivity infrastructure in Windhoek and other major Namibian towns. The company stated that their expansion strategy reduces reliance on third-party service providers, containing costs in the process and creating increased opportunity for leveraged revenue growth in future.
Paratus Group runs networks across Africa with operating offices in Angola, Botswana, Mozambique, Namibia, South Africa and Zambia. The group provides connectivity services to more than 20 African countries through an extensive partner network.