The shareholders of Vox Telecom look to sell the South African fibre-network provider for R3-billion. People familiar with the deal said that it is being done to take advantage of consolidation in the industry.
Biggest cities in South Africa are experiencing a boom in fibre-to-home as new entrants into the market and infrastructure bring down the cost of high-speed internet. The acquisition of Vumatel fibre provider earlier this month by South Africa’s richest man, Johann Rupert’s investment unit, confirmed the speculations of a growing appetite for investment deals in the telecommunications industry.
According to itnewsafrica, the shareholders, FirstRand’s Rand Merchant Bank and Investec specialist banking and asset management group see the sales as an opportunity to exit and take advantage of these growing investment opportunities.
Although Vox, RMB and Investec has not issued an official comment. And reports related to itnews africa show that RMB and Investec were part of a group led by Lereko Metier who purchased Vox for R452 million in 2011.
In 2014, the co-owners considered a share sale on Johannesburg’s stock exchange but failed to attract a valuation at which they wanted to sell. Vox has since invested in expanding and building its services.
During its latest financial year, the Johannesburg-based company had earnings before interest, taxes, depreciation and amortization of about R300 million.