Tribunal greenlights Actis buyout of Octotel - TechCentral

Tribunal greenlights Actis buyout of Octotel

The Competition Tribunal has given its blessing to emerging market investment firm Actis’s acquisition of a controlling stake in Cape Town fibre broadband operator Octotel, and has attached no conditions to this approval.

In October, TechCentral reported that the deal attached a R2.3-billion enterprise value to Octotel, which is a competitor in the Western Cape to Telkom’s Openserve division and the Remgro-controlled Vumatel.

Octotel was founded in 2016 and its fibre network today passes about 175 000 homes and businesses.

At the same time, Actis is buying a non-controlling interest in Internet service provider RSAWeb. 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 at the time the deal was announced.

“The tribunal has found that the proposed transaction is unlikely to substantially prevent or lessen competition in any market. In addition, the proposed transaction does not raise any public interest concerns,” the Competition Tribunal said in a statement on Thursday.  — © 2020 NewsCentral Media

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