Shareholders of Vox Telecom, a South African fibre-network provider, are said to be looking to sell the company for about R3-billion to take advantage of consolidation in the industry, according to two people familiar with the matter.
Owners FirstRand’s Rand Merchant Bank and Investec, specialist banking and asset management group, see an opportunity to exit, said people who knew about the matter, but asked not to be identified because details of the plans aren’t public as of yet.
This after a unit of Remgro, the investment vehicle of South Africa’s richest man, Johann Rupert, bought part of fibre provider Vumatel earlier this month, showing that there is an apparent appetite for deals in the industry.
South Africa’s biggest cities are experiencing a boom in fibre-to-home as new entrants into the market and infrastructure bring down the cost of high-speed internet.
Vox, RMB and Investec declined to comment.
RMB and Investec were part of a group led by Lereko Metier that bought Vox for R452 million in 2011. The owners considered a share sale on Johannesburg’s stock exchange in 2014, but didn’t attract a valuation at which they wanted to sell. Vox has since invested in expanding and building its services, said the people.
By Daniëlle Kruger
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