MARKET UPDATE
| IFC plans equity investment in Flexnclosure Tue, 08 Jan 2013 11:38:00 +0530 |
| Business Standard Economy Policy News International Finance Corporation ( IFC) is planning an equity investment in Flexenclosure, owned by a Swedish private investment fund and other investors including Artheon Televentures Pvt Ltd in India. The proposed investment, which will be around $9.1 million, will help the company support its projects. Meanwhile, the Flexenclosure is also planning to raise the next round funding from three PE players. The company’s projects will be located in primarily rural areas in developing countries, including India. The proceeds of the IFC investment will be used to support the company’s expansion plans in emerging markets. The total project cost is estimated to be around $18.2 million and IFC plans an equity investment of up to $9.1 million alongside the company’s existing major shareholders, according to company's project disclosure. IFC's investment in Flexenclosure will provide the Company with a vital "stamp of approval" and help it raise the next round of equity investment from three other private equity funds in 2013 to implement its business plan, said IFC. The proposed projects are expected improve mobile telecommunication coverage in rural areas through increased reliability of power supply for mobile telecom towers, improving the competitiveness of mobile operators and tower companies through reduced operating cost and reducing diesel consumption and carbon emissions, IFC added. Flexenclosure AB is a Sweden-based technology company that supplies power optimisation solutions (eSite) and modular data centers (eCenter) to mobile telecom sector in developing countries in Sub-Saharan Africa, India and South East Asia. The company is owned by its founding investor Pegroco Invest, a Swedish private investment fund, which holds 31%, Industrifonden (29%), an independent ever-green private equity fund founded by the Swedish government and Second National Pension Fund (AP2, 17%), one of five Swedish pension funds of the Swedish Government. The remaining 23% is owned by a large number of individual investors including the Company’s management and a joint venture partner Artheon Televentures Pvt Ltd in India. The company’s eSite solutions provide up to 90% of energy cost savings for off grid and unreliable grid connected mobile telecom towers in rural areas. Diesel cost accounts for 50-90% of the towers’ operating cost in rural areas because these towers rely on diesel generators for uninterrupted power supply. The eSite solutions integrate available energy sources (solar, wind, grid power, batteries or diesel generator) to increase energy efficiency through a controller (Diriflex), a proprietary algorithmic software that controls the generation, storage and distribution of energy in real-time to maximise use of renewable energy, minimise runtime of diesel generators, prolong service life of the batteries and diesel generators. Diriflex also provides remote monitoring through a web-based interface, “eManager”, for remote site maintenance and increased site security. |
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