MTN has acquired a controlling stake in Afrihost, but the ISP told clients that it will not influence the way it operates, nor its brand.
MTN is buying 50% +1 of Afrihost’s shares, and the current Afrihost shareholders are retaining the remaining 50%.
Afrihost said in an email to its customers that the acquisition will give it more muscle to innovate, and offer value to its customers.
“The way you deal with us stays the same. Our management team stays the same. The entire Afrihost team stays the same,” Afrihost CEO Gian Visser said in his email to clients.
“Our passionate focus on service stays the same. Our brand stays the same. We keep working out of our own premises,” he added.
Visser told Afrihost customers that there is basically only one change: “We have a big brother standing by our side, shoulder to shoulder, supporting us in our dream and goal to become the absolute best company in South Africa”.
“I sincerely believe that joining MTN is the best thing we can do for you, our clients and our team. We’re going to do amazing things,” said Visser.
MTN South Africa said in a statement that it signed an agreement with Brendan Armstrong, Angus MacRobert, Peter Meintjes, Greg Payne, Frank Payne and Gian Visser and their family trusts and investment company in terms of which MTN South Africa will subject to the fulfilment of certain conditions precedent acquire a shareholding of 50% plus one share in Afrihost
“The Afrihost acquisition will add scale to MTN South Africa’s online ICT service offering which is focused on the consumer and SME market. MTN South Africa expects to leverage off Afrihost’s strong customer service, value proposition and agility, thereby boosting MTN South Africa’s presence in the SME, Corporate/Consumer and Connected Home segments.
“MTN South Africa will in addition be able to supply Afrihost with products for its existing customer base and vice versa,” the group said.
The agreement is subject to various regulatory approvals.
This article first appeared on MyBroadband.