South Africa: Vox Telecom To buy Out Investec In $130Million Deal
Vox Telecom SA shareholders that include FirstRand Ltd’s RMB have agreed to buy out Investec Ltd as part of a R2 billion ($130 million) recapitalization of the fibre-network operator.
The CEO of Vox, Jacques Du Toit, confirmed that Metier Private Equity Ltd and its management are also part of the transaction. The group will look to accelerate the fibre rollout outside of South Africa’s major cities and to the country’s smaller businesses.
Du Toit said that based on the current growth rate that Vox has been experiencing, the majority of its shareholders decided not to sell the business. He added that more investment would be focused on accelerating the company’s growth strategies.
Investec was part of the group that bought Vox in 2011 and owns approximately one-third of the business. The Johannesburg-based lender did not respond to a request for comment.
Vox is among several fast-growing firms leading the fibre-to-home market in South Africa, building improved infrastructure and decreasing the cost of high-speed internet. Vox has secured about 40 small acquisitions to build scale in recent years, according to Du Toit.
The company’s competitors include Vumatel Pty Ltd, Dark Fibre Africa and Vumatel, both part-owned by the billionaire Johann Rupert, as well as Liquid Telecom.