Vodacom’s proposed acquisition of a 30% stake in fibre network operator Maziv could value the target company at up to R36-billion after agreeing revised terms on Friday.

That would make Maziv, which owns fibre companies Vumatel and Dark Fibre Africa, worth more than R7-billion more than Telkom, which closed on Friday on the JSE with a market capitalisation of R28.9-billion. Telkom owns Openserve, South Africa’s second largest fibre operator after Vumatel.

Vodacom is moving closer to finalising the long-delayed deal following a breakthrough with the Competition Commission last week to clear the way for an unopposed hearing at the competition appeal court on Tuesday.

After agreeing revised terms with the commission and CIVH, Maziv’s parent company, Vodacom will now contribute fibre network infrastructure worth R4.9-billion rand in return for new shares in Maziv and pay R6.1-billion in cash for new shares, it said in a statement.

Previously, Vodacom offered R6-billion in cash and in fibre assets valued at R4.2-billion. Vodacom will also acquire additional shares from CIVH for an estimated R2.5-billion to reach the 30% stake.

Maziv, which owns network operators Vumatel and Dark Fibre Africa, may declare a dividend of up to R4.2-billion before the deal closes. If declared, Vodacom’s cash consideration would be reduced by up to R1.3-billion, the company said.

The revised terms of the deal reflect a pre-acquisition transaction equity valuation of R29.8-billion if the dividend is declared, and R34-billion if it is not, Vodacom said.

Herotel

The transaction also includes Maziv’s 49.96% stake in Herotel, a wireless internet provider. Vodacom will pay an additional R600-million for its share of that stake, raising the total equity value to R31.8-billion, or R36-billion if no dividend is declared.

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

Vodacom’s option to increase its stake in Maziv has been revised down to 4.95% from 10% previously, potentially raising its total stake to 34.95%. — Nqobile Dludla, (c) 2025 Reuters, with additional reporting (c) 2025 NewsCentral Media

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