Emerging markets investment firm Actis has agreed to buy a controlling stake in Cape Town-based fibre broadband network operator Octotel.
The deal attaches a R2.3-billion enterprise value to Octotel, Actis said in a statement.
At the same time, Actis will buy a non-controlling interest in Internet service provider RSAWeb. Both transactions are subject to regulatory approval.
Octotel was founded in 2016 and its fibre network today passes about 175 000 homes and businesses.
Octotel and RSAWeb were both founded by Internet entrepreneurs Rob Gilmour and Mark Slingsby, who will remain as shareholders and will continue to lead the existing management teams.
Caxton and CTP Publishers and Printers and the Pembani Remgro Infrastructure Fund will fully exit their respective positions in the two entities, Actis said.
David Cooke, Actis partner based in Johannesburg, said: “Octotel and RSAWeb are the latest Actis investments into the high-growth ‘digital infrastructure’ sector. We have a growing portfolio of data centre investments and are delighted to now be making our first investment in the fibre sector.
“Rob and Mark are industry pioneers in South Africa and together with their institutional backers have created highly successful businesses in Octotel and RSAWeb,” Cooke said. — (c) 2020 NewsCentral Media