Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

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

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Mobile money lifts Africa savings to decade high

      17 July 2025

      South Africa loosens media ownership rules – but keeps one hand on the remote

      16 July 2025

      Eskom targets 32GW green energy shift by 2040

      16 July 2025

      MTN Group appoints new chief enterprise officer

      16 July 2025

      Kruger Park’s white rhinos get a hi-tech lifeline

      16 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025
    • In-depth

      The 1940s visionary who imagined the Information Age

      14 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025
    • TCS

      TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

      16 July 2025

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025
    • Opinion

      A smarter approach to digital transformation in ICT distribution

      15 July 2025

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Remgro ups stake in Vumatel, DFA parent following rights issue

    Remgro ups stake in Vumatel, DFA parent following rights issue

    By Duncan McLeod25 March 2021
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Remgro has increased its stake in Community Investment Ventures Holdings (CIVH), the parent of Vumatel and Dark Fibre Africa (DFA), following a rights issue used by CIVH to raise capital for expansion and reduce debt.

    Remgro disclosed in its interim results for the six months ended 31 December 2021 — published on Thursday — that its stake in CIVH has increased marginally from 54.7% to 55.2% through the share subscription offer, in terms of which it subscribed for an additional 54 738 shares in CIVH for a total consideration of just over R1.6-billion.

    “The rights issue proceeds were used mainly to reduce the CIVH group’s debt and to unlock capital expenditure facilities for further growth,” Remgro said.

    The rights issue proceeds were used mainly to reduce the CIVH group’s debt and to unlock capital expenditure facilities for further growth

    CIVH has a March year-end and its results for the six months ended 30 September 2020 have been included in Remgro’s results for the period under review.

    The underlying performance of the business improved due to a 17% increase in revenue coupled with cost reductions, Remgro said.

    “The group (CIVH) is operationally cash generative and reinvested in excess of R500-million of operating cash flow during the period into expanding its operations and network footprint.”

    Headline losses

    CIVH’s contribution to Remgro’s headline earnings in the six-month period amounted to a loss of R209-million (2019: a loss of R197-million). That means that CIVH recorded a headline loss in the latest period of R382-million, from a loss of R360-million previously.

    Remgro said DFA’s revenue remained flat in the latest reporting period at R1.2-billion. However, annuity income increased to R187-million/month as at 30 September 2020 (R174-million/month in the comparable period in 2019), which was offset by lower construction services revenue and reduced income from network assets transferred to Vumatel at the end of the prior period.

    Underlying operating earnings at DFA increased by 47% to R232-million. The current book value of the fibre-optic network is in excess of R10-billion, while the future value of the current annuity contracts (excluding open orders) is also over R10-billion.

    Vumatel’s revenue increased by 43% to R1.1-billion, driven by accumulated subscriber uptake growth and the acquisition of additional networks from a DFA subsidiary. Underlying operating earnings increased by 25% to R297-million.

    “Covid-19 accelerated the requirements for data and, in turn, assisted in the performance of the fibre-to-the-home business,” Remgro said.

    Remgro issued a guarantee to Rand Merchant Bank for a loan facility, which was granted to CIVH to fund its acquisition of all of Vumatel. Remgro’s exposure at 31 December 2020 amounted to R3.5-billion. – © 2021 NewsCentral Media

    Now read: Vumatel to launch 10Gbit/s home fibre in South Africa



    CIVH Dark Fibre Africa DFA Remgro RMB top Vumatel
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleNompumelelo Mokou to lead Dimension Data Southern Africa as MD
    Next Article Facebook interdicted in fight with South Africa’s GovChat

    Related Posts

    Vodacom, Maziv deal now looks likely after CompCom U-turn

    8 July 2025

    Vodacom’s influence on Maziv too strong to ignore: tribunal

    27 June 2025

    Finally! Tribunal unpacks why it blocked Vodacom’s Vumatel deal

    24 June 2025
    Company News

    Ransomware in South Africa: the human factor behind the growing crisis

    16 July 2025

    Mental wellness at scale: how Mac fuels October Health’s mission

    15 July 2025

    Banking on LEO: Q-KON transforms financial services connectivity

    14 July 2025
    Opinion

    A smarter approach to digital transformation in ICT distribution

    15 July 2025

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    Subscribe to Updates

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

    © 2009 - 2025 NewsCentral Media

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