PCM Capital Partners, managers of the $50 million West Africa Emerging Growth Fund or WAEMGF, have announced a €5 million equity investment in Surfline Communications, a provider of 4G LTE data and related services to residential, SME and Corporate clients in Ghana. As part of the deal, J. Mawuli Ababio, the Partner who led the transaction for PCM Capital, will take a seat on Surfline’s Board. Additional terms of the deal were not disclosed.
Surfline, which now has about 75,000 subscribers, was first incorporated in 2011, receiving a Broadband Wireless Access license from Ghana’s National Communication Authority in 2013 enabling it to begin its commercial rollout in 2014. Currently, its operations cover the metropolitan areas of Accra and Tema, and Sekondi-Takoradi. The company plans further network expansion in metropolitan Kumasi and other regional capitals over the course of 2016.
John Taylor, Founder and Executive Chairman of Surfline, when commenting on the deal indicated that “the injection has come at a good time when Surfline is embarking on an expansion rollout to other regional capitals to ensure Ghanaians enjoy reliable 4G LTE data services.”
The deal marks PCM Capital Partners’ seventh investment for the fund, which has a cross-sector focus. Other investments to date have included deals in the downstream oil and gas, agri-business, financial services, hospitality and pharmaceuticals sectors. WAEMGF counts South Africa’s Public Investment Corporation, the African Development Bank, ECOWAS Bank for Investment and Development, the Ivorian private sector employees’ pension fund and other regional financial institutions among its backers.
Kuenyehia & Nutsukpui Legal Practitioners & Notaries provided legal services to PCM Capital Partners for the transaction, while Legal Ink Lawyers and Notaries acted on behalf of Surfline.