African Rainbow Capital (Arc) Investments has released its half-year financial results and announced that it had maintained its 20.25% shareholding of Rain at a R3.635 billion valuation.<\/p>\n
Dividing the valuation by Arc\u2019s shareholding shows that the company believes Rain is worth R17.951 billion.<\/p>\n
For context, Telkom\u2019s market capitalisation stood at R17.61 billion at publication time.<\/p>\n
Arc\u2019s investment in Rain comprises 26.6% of the fund value.<\/p>\n
\u201cThe industry has been affected by the ongoing load-shedding and battery theft which led to a corresponding increased cost,\u201d Arc stated.<\/p>\n
It said this is expected to remain a challenge in the short term.<\/p>\n
\u201cDemand has however remained robust and Rain continued to deliver well on both 4G and 5G sales during the period,\u201d said Arc.<\/p>\n
It also said Rain is already delivering strong profits and expects this to continue accelerating if current trends persist.<\/p>\n
\u201cRain is on course to achieve an EBITDA of over R2 billion for the year ended February 2023, after considering IFRS 16 adjustments as is industry practice.\u201d<\/p>\n
The table below provides an overview of Arc\u2019s shareholding value and Rain\u2019s total valuation between December 2017 and June 2022.<\/p>\n