R13.2 Billion Deal Joins Vodacom to Vumatel and Dark Fibre Africa, Companies Will Have Joint Control
- Vodacom is awaiting approval for a deal worth R13.2 billion which will see them gain control in InfraCo
- InfraCo is an entity that consists of assets held by Dark Fibre Africa and Vumatel, amongst others
- The proposed co-controlling share that Vodacom will own is 30%, but they have been offered the opportunity to up this figure to 40%
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Vodacom has signed an R13.2 billion deal to acquire a 30% share in the InfraCo entity that includes Dark Fibre Africa (DFA) and Vumatel.
InfraCo will consist of assets currently held by DFA and Vumatel, and once the deal is approved by regulators, Vodacom's assets will be included too.
According to MyBroadband, Vodacom might end up having a 40% share, as the network has been offered the opportunity to purchase 10% more shares. This offer will be available to Vodacom for 180 days.
Source: Getty Images
Vumatel and Vodacom's joint control plan
DFA is a fibre provider that acts as a link between small towns and cities, while Vumatel is the largest fibre-to-the-home (FTTH) in South Africa.
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These assets could be powerful when paired with Vodacom's infrastructure, resulting in more fibre coverage in South Africa, Tech Central reports.
“Through Vodacom’s investment, InfraCo would accelerate and expand its lower and middle-income product offering to deliver affordable high-speed broadband access to a broader population segment, including small and medium-sized enterprises," reads a statement by Vodacom.
MTN allegedly planning to take over Telkom
Previously Briefly News reported that South Africa's second-largest telecommunications company has its eye set on acquiring Telkom.
MTN is said to have already approached Telkom about a takeover, however, Telkom has shown no interest in selling the company, which is now the third-largest cellphone network firm.
The negotiations talks between the two telecommunications companies are currently being kept confidential and there is uncertainty on whether or not MTN will continue to pursue Telkom.
Source: Briefly News
