I-cap takes a $35m punt on Woosh

By PAUL BRISLEN

Private equity fund Intellectual Capital Partners (i-cap) has invested $35 million in wireless network operator Woosh Wireless.

The funds will be used to enhance the company's existing network in both Auckland and Wellington as well as helping it meet its goal of setting up operations in Christchurch and Southland.

This month Woosh pulled out of its commitments to the Government's rural broadband initiative Project Probe in Northland, Wairarapa and Canterbury but chairman Rod Inglis said the new money was not associated with that issue.

"With Probe the issue was the timetable. We hadn't signed contracts in those three regions and by the time we got to that point we felt it was too late to meet the targets."

Inglis said Woosh approached i-cap about the investment.

"We'd been talking with investment partners and i-cap was the best candidate."

I-cap joins existing shareholders Todd Capital, US-based telco investment specialist Clarity Partners, Craig Heatley and Stephen Tindall as well as Inglis himself. Inglis puts the current level of investment in Woosh at "over $100 million".

I-cap managing director Tony Hannon said i-cap had always kept an eye on the technology and telecommunications market but it was not for the faint-hearted.

"We were looking for a company with good branding, good people and a good business case and we believe Woosh has those in abundance."

Inglis said Woosh still planned to list on the stock exchange "in the next year to 18 months" and the i-cap investment did not change that.

Woosh chief executive Bob Smith said that despite the size of the telecommunications sector there was very little choice of investment vehicles in that market.

"There's demand from investors for choices other than just Telecom in the sector," Smith said.

Woosh has signed on 5000 customers since it changed its name from Walker Wireless and launched its commercial high speed wireless Internet service in September last year.