The Kula Fund II Limited, managed by Pacific Capital Partners Limited, has secured an impressive 36% internal rate return for its investors through the sale of its stake in Data Nets Limited (DNL), the telecommunications company based in Papua New Guinea.
DNL is one of the leading providers of both telecommunication and internet services in the Pacific, specifically covering Papua New Guinea and Fiji.
Aureos Capital Limited is a private equity fund management company specialising in investing in small to medium sized businesses in emerging markets.
DNL was acquired by the Digicel group, a Central American and South Pacific mobile phone network operator.
Kula II invested in DNL in October 2006 as part of its strategy to invest in companies with regional aspirations in high growth potential sectors. The period of Aureos’s investment saw a dramatic leap in turnover and profitability, with DNL’s EBIT increasing at a compounded annual growth rate of 54%.
In 2008, DNL acquired a strategic stake in i-PAC Communications Ltd, an internet service provider in Fiji. In the same year, DNL built the first 4G Internet platform in Fiji, which significantly enhanced the quality of the internet service provided.
Raman Anantharaman, Aureos Partner (Pacific region), says: “Our aim, when we invested in Data Nets Limited, was to assist the company with the implementation of its growth strategies in Papua New Guinea and expand its business footprint in the Pacific. We are extremely pleased that the company was not only able to record significant growth in the Papua New Guinea market through technologically innovative products but also make its transition to a regional operator.”
The period of Kula II’s investment in DNL saw the introduction of several new services. These include BuyPowa, a mobile phone application which enables users to use airtime to buy electricity. This was followed by another mobile phone application in 2010 called MPowa, which allows people to use their mobile phone to buy groceries in Papua New Guinea.
