In December 2008, Kinnevik sold its investment in the pan African pay-TV operator Gateway Broadcasting Limited (“GTV”) for a total consideration of USD 23.6 million.
Kinnevik’s investment in GTV achieved an IRR of 40%, and in the sale Kinnevik received 1.8 times the amount invested in May 2007.
The exit is a consequence of the sale to Vodacom of GTV’s parent company, Gateway Telecommunications SA (Pty) Ltd, which provided the security for the equity loan in which Kinnevik was a lead investor.
Gateway offers an attractive pay-TV package and is the fastest growing pay-TV operator in Africa. During the last year five of seven new pay-TV subscribers have chosen GTV’s services and the number of subscribers has increased to approximately 120,000.