Frogfoot Targets 360,000 New Fibre Connections a Year After R14.4bn Valuation Deal

Frogfoot Networks, Vox and Hypa Fibre have secured a major capital injection aimed at accelerating fibre deployment across South Africa, particularly in underserved and lower-income communities.

The transaction values the three companies at a combined R14.4 billion and provides new equity capital and additional leverage to support a substantial expansion of their networks. Frogfoot plans to quadruple its annual rate of home connections to approximately 360,000 homes over the next 12 months.

The accelerated rollout is also expected to create more than 5,000 direct jobs within local communities.

The transaction implies a combined after-debt equity value of R8.4 billion and includes subscriptions for new shares in Frogfoot and Vox, including Vox’s wholly owned subsidiary Hypa, by several incoming investors.

The largest shareholder grouping is the DNI Consortium, comprising DNI 4PL Contracts, JSE-listed Sabvest Capital, Masimong Group Holdings and Draper Gain International.

A second major shareholder grouping consists of two partnerships managed by the general partners of Metier Capital Growth Fund III, while EM-Three Investment Holdings, founded by Simphiwe Mehlomakulu, will be the third-largest direct shareholder.

Management will also hold a direct equity interest, aligning executives with the companies’ long-term growth. No individual shareholder currently controls Frogfoot or Vox, and no shareholder will obtain a controlling interest following implementation of the transaction.

Abraham van der Merwe, who will lead the businesses as CEO alongside CFO Gert Koen, said the investment is intended to drive digital inclusion at scale.

He said expanding fibre into townships and lower-income areas can improve access to education, financial services, remote employment and opportunities for small businesses.

The group operates through three complementary businesses. Frogfoot Networks is South Africa’s fourth-largest fibre network operator and provides fibre-to-the-home, business and tower infrastructure. Vox is a national internet service provider offering fixed and wireless connectivity, voice, data, cloud, collaboration and cybersecurity services to businesses, government and households.

Hypa Fibre focuses on affordable prepaid fibre services for lower-income households, operating across the Vuma Reach, Openserve and Frogfoot Rise networks.

DNI Group CEO Dr Ryan Noach said affordable high-speed internet should be regarded as a social imperative, while Metier Capital Growth Fund III Principal Grant Howarth said the new partnership would help the businesses deepen their presence in underserved regions.

EM3 founder Simphiwe Mehlomakulu said the transaction brings together investors with a shared long-term vision while providing the capital required to significantly accelerate growth and expand digital access.

RMB, the corporate and investment banking division of FirstRand, acted as financial and transaction adviser and funder to the companies.

//Staff writer