Vumatel and Investec have finalised a deal in which the South African and International Specialist Bank and Asset Manager has acquired a minority stake in the business. The announcement follows a significant equity investment by the bank into the company that has been instrumental in driving Fibre-To-The-Home (FTTH) connectivity in the country.
According to Vumatel it ignited a fibre race in South Africa with its pilot project in Parkhurst, Johannesburg in 2014. To date, according to the company, it has connected seven suburbs in the country to world class broadband connections.
“We are very excited about our investment in Vumatel. We like the business and the experience of the management team. They have lead the FTTH revolution in South Africa, setting the bar for the industry in how it should be done. Their commitment to creating affordable high speed open access fibrehoods through focus on customer service will have a fundamental impact on the telecommunications industry,” said Kobus Viljoen of Investec.
“With Investec’s support, Vumatel will be better positioned to accelerate its roll-out to communities across South Africa. This partnership will furthermore assist in speeding up both transformation within the economy and changing the lives of consumers.” says Niel Schoeman, CEO Vumatel.
“Vumatel is delighted to have Investec, which shares our vision of creating a connected South Africa, as a shareholder in the business. This investment provides the business with the ability to connect up to 100,000 homes by 2016 and therefore further entrench Vumatel as the leading FTTH player in the market. This investment will allow us to deliver word class connectivity, choice and superior customer service to every community that requests it,” concluded Schoeman.