We are very pleased to be launching our next company, Africa Mobile Networks (AMN).
Many African countries have good mobile network coverage in the towns and cities but not in rural areas, as operators prioritise capex spend on the cities.
Sub-Saharan Africa is home to 800-900m people and a US$41bn mobile market, but with only 500m people having coverage. AMN has an innovative solution to serve the 100m without coverage who can be served profitably – a market potentially worth another US$6bn a year.
AMN is already deploying a technology optimised for Africa in its launch market, with combination of BTS transmitters coupled with VSat satellite technology directing the traffic onto an existing network and solar panels to power the systems in rural areas without electricity supply.
We are raising £1m out of a total £2.5m for AMN at £2.08 per share and pre-money valuation of £10.4m.
The company is targeting an exit in 5 years, when it expects to have just under 5,000 masts in operation, at US$1.1bn net of debt.
AMN does plan to raise additional funding for the rollout (both equity and debt), and with the number of shares it expects to issue a US$1.1bn exit would equate to approx. £60 per share for Harwell investors.