Community Investment Ventures Holdings (CIVH) has acquired 34.9% of Vumatel for an undisclosed amount.
The company has also entered into an agreement with Vumatel shareholders to acquire the remaining 65.1% of Vumatel, subject to funding and regulatory approvals.
CIVH is owned by a group of investors – Remgro, New GX Capital Holdings, Chanich, Community Investment Holdings (CIH), and Consolidated Capital Investments.
CIVH’s investment in Vumatel complements the group’s existing portfolio, comprising wholly owned subsidiary Dark Fibre Africa (DFA).
This announcement follows a MyBroadband report in May that CIV Holdings, in which Remgro has a majority shareholding, was in discussions to acquire Vumatel.
Vumatel has built one of the largest open access fibre networks in South Africa, with a strong focus on fibre-to-the-home services. Its FTTH network spans over 8,000 kilometres over a residential area footprint which it leases to Internet Services Providers (ISPs), who in turn sell internet products to the consumer.
Vumatel has also completed the planning for the first phase of its fibre network build for Alexandra, and is waiting on the required regulatory approvals.
Announced in September 2017, Vumatel plans to offer uncapped fibre services to the residents of Alexandra for R89 per month.
It aims to do this in a way that is commercially-sustainable, without subsidising the township network with profits from clients in affluent suburbs.
An acquisition of Vumatel by CIV Holdings will significantly strengthen Remgro’s position in the South African fibre market.