TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentralTechCentral
    NEWSLETTER
    • News

      Largest SA telecoms operators launch new industry association

      11 August 2022

      Analysis | Rain muddies the waters with approach to Telkom

      11 August 2022

      Rain wants to merge with Telkom: asks to pitch proposal to board

      11 August 2022

      MTN shares climb on robust Nigeria, SA performance

      11 August 2022

      MTN receives $35-million offer for Afghanistan unit

      11 August 2022
    • World

      Gaming industry’s fortunes fade as pandemic ends

      11 August 2022

      Disney tops Netflix in streaming subscribers

      11 August 2022

      Jumia says it’s past peak losses, shares jump

      10 August 2022

      Elon Musk sells $6.9-billion of Tesla to avoid Twitter fire sale

      10 August 2022

      Nvidia issues profit warning on slump in demand for graphics cards

      8 August 2022
    • In-depth

      African unicorn Flutterwave battles fires on multiple fronts

      11 August 2022

      The length of Earth’s days has been increasing – and no one knows why

      7 August 2022

      As Facebook fades, the Mad Men of advertising stage a comeback

      2 August 2022

      Crypto breaks the rules. That’s the point

      27 July 2022

      E-mail scams are getting chillingly personal

      17 July 2022
    • Podcasts

      Qush on infosec: why prevention is always better than cure

      11 August 2022

      e4’s Adri Führi on encouraging more women into tech careers

      10 August 2022

      How South Africa can woo more women into tech

      4 August 2022

      Book and check-in via WhatsApp? FlySafair is on it

      28 July 2022

      Interview: Why Dell’s next-gen PowerEdge servers change the game

      28 July 2022
    • Opinion

      SIU seeks to set aside R215-million IT tender

      19 July 2022

      No reason South Africa should have a shortage of electricity: Ramaphosa

      11 July 2022

      Ntshavheni’s bias against the private sector

      8 July 2022

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»News»Remgro’s CIVH pounces on Vumatel

    Remgro’s CIVH pounces on Vumatel

    News By Duncan McLeod8 June 2018
    Facebook Twitter LinkedIn WhatsApp Telegram Email
    Vumatel chairman Niel Schoeman

    Community Investment Ventures Holdings (CIVH), a shareholder in Dark Fibre Africa, announced on Friday is has bought 34.9% of fibre-to-the-home pioneer Vumatel and plans to buy the remaining 65.1% soon, subject to funding and regulatory approvals.

    The telecommunications investment firm has not disclosed the value of the deal. Vodacom had earlier been strongly speculated to be interested in buying a 49% stake in Vumatel.

    CIVH is owned by a diverse group of investors: JSE-listed Remgro (which is the controlling shareholder with a 50.9% stake), New GX Capital Holdings, Chlanich, Community Investment Holdings and Consolidated Capital Investments.

    CIVH’s investment in Vumatel complements the group’s existing portfolio, comprising wholly-owned subsidiary Dark Fibre Africa

    “CIVH’s investment in Vumatel complements the group’s existing portfolio, comprising wholly-owned subsidiary Dark Fibre Africa,” it said in a statement. “DFA builds and operates over 10 000km of optic-fibre infrastructure, which is leased to its wholesale customers on an open-access basis.”

    “Acquiring Vumatel will significantly strengthen CIVH’s ability to contribute to, one day, getting broadband and Internet to every suburb, home and business in South Africa,” said CIVH nonexecutive chairman Pieter Uys. “Both companies will operate as independent subsidiaries of CIVH and will continue to build open-access networks across the country.”

    Vumatel’s home fibre network spans over 8 000km, which it leases to Internet services providers , which in turn sell Internet products to the consumer.

    Vumatel entered the FTTH market in 2015 when it rolled out a project to provide the Johannesburg suburb of Parkhurst with high-speed Internet. The company has since expanded significantly in Gauteng, as well as in Cape Town and Durban. Vumatel recently revealed plans to begin deploying fibre broadband to townships, with a project to bring broadband internet to Alexandra, north of Johannesburg, expected to begin soon.

    ‘Early lead’

    “Vumatel took the early lead in the fibre-to-the-home market in South Africa,” said Niel Schoeman, executive chairman of Vumatel, in the statement. “Strategically, the transaction makes sense for the parties. Telecoms requires scale and access to capital to be efficient to the broader community. South Africa still has a long way to go for all its citizens to have access to world class broadband. The addition of CIVH as a significant shareholder, will give impetus to Vumatel’s ambitious efforts in that regard.”

    The acquisition will allow Vumatel and DFA to reach more customers with better products in the small and medium enterprise market, said Khudu Pitje, CEO of New GX.

    Rand Merchant Bank and Morgan Stanley acted as joint transaction advisers to CIVH. RMB also acted as sole capital structure advisor and debt funder to CIVH.  — © 2018 NewsCentral Media

    • This is a developing story…
    Dark Fibre Africa DFA Khudu Pitje New GX Capital Niel Schoeman Pieter Uys top Vumatel
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleRand crashes below R13.25/$
    Next Article Interview: Pieter Uys on the big Vumatel deal

    Related Posts

    Largest SA telecoms operators launch new industry association

    11 August 2022

    Analysis | Rain muddies the waters with approach to Telkom

    11 August 2022

    Rain wants to merge with Telkom: asks to pitch proposal to board

    11 August 2022
    Add A Comment

    Comments are closed.

    Promoted

    Pricing Beyond CMYK: printers answer the FAQs

    11 August 2022

    How secure is your cloud?

    10 August 2022

    5 ways to make attack-path management more manageable

    10 August 2022
    Opinion

    SIU seeks to set aside R215-million IT tender

    19 July 2022

    No reason South Africa should have a shortage of electricity: Ramaphosa

    11 July 2022

    Ntshavheni’s bias against the private sector

    8 July 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.