Patrice Motsepe’s African Rainbow Capital (ARC) has increased the value it attaches to telecommunications operator Rain to R12.1-billion.

In its full-year results to 30 June 2019, ARC said it has increased the valuation from R2.1-billion at 30 June last year to R2.5-billion a year later, mainly due to a “fair-value write-up of R364-million”. ARC holds 20.6% of Rain, implying a valuation of R12.1-billion.

“Rain is aiming to become a full-service mobile network operator, focusing on data as a primary offering,” ARC said in its financial results.

Overall, Rain is tracking well against the timelines to extend its footprint and the development of the business

“The major assets constitute spectrum licences. Overall, Rain is tracking well against the timelines to extend its footprint and the development of the business,” it added.

“Significant progress has been made to further improve on network performance and stability. The company is well positioned to become a major player in the 5G data market.”

Rain’s spectrum assets include allocations in the 1.8GHz and 2.6GHz bands. Rain also has spectrum at 3.6GHz, which could be used for 5G.

The company has a national roaming agreement with Vodacom. — (c) 2019 NewsCentral Media