Community Investment Ventures Holdings (CIVH) has acquired 34.9% of Vumatel for an undisclosed amount.<\/p>\n
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.<\/p>\n
CIVH is owned by a group of investors \u2013 Remgro, New GX Capital Holdings, Chanich, Community Investment Holdings (CIH), and Consolidated Capital Investments.<\/p>\n
CIVH\u2019s investment in Vumatel complements the group\u2019s existing portfolio, comprising wholly owned subsidiary Dark Fibre Africa (DFA).<\/p>\n
This announcement follows a MyBroadband report<\/strong><\/a> in May that CIV Holdings, in which Remgro has a majority shareholding, was in discussions to acquire Vumatel.<\/p>\n 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.<\/p>\n 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.<\/p>\n Announced in September 2017, Vumatel plans to offer uncapped fibre<\/strong><\/a>\u00a0services to the residents of Alexandra for R89 per month.<\/p>\n It aims to do this in a way that is commercially-sustainable, without subsidising the township network with profits from clients in affluent suburbs.<\/p>\n An acquisition of Vumatel by CIV Holdings will significantly strengthen Remgro\u2019s position in the South African fibre market.<\/p>\n
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