Vox Telecom plans exit for private equity owners

Mergers, Acquisitions and Financial Results

South African voice and data provider Vox Telecom is preparing an exit for its private equity shareholders, according to Bloomberg. Vox will explore options including a trade sale or investment by a new partner seeking to expand in Africa, CEO Jacques du Toit said.

Investec Corporate Finance has been hired to advise on the deal for Johannesburg-based Vox, he said. Shareholders include Rand Merchant Bank and Investec. The CEO said Vox is using the opportunity to explore several options, given the current activity in the telecoms landscape, adding that the shareholders will sell but it depends on the price.

Vox, which was bought by a group led by black-owned investment company Lereko Metier for about ZAR 452 million in 2011, would join a wave of developments in South Africa's telecommunications sector. Vodacom Group agreed to acquire internet provider Neotel for ZAR 7 billion in May, and fixed-line operator Telkom is buying Business Connexion Group (BCX) for ZAR 2.7 billion.

While Vox has received some expressions of interest from trade buyers, it has not heard from MTN Group or Vodacom, du Toit said. The process will close on 21 July, he said, ruling out IPO.