Remgro in talks to acquire Vumatel

16 March 2018

Mergers, Acquisitions and Financial Results

Remgro, the investment vehicle of South African billionaire Johann Rupert, is in advanced talks to buy fibre-optic provider Vumatel in a bid to consolidate the country’s broadband infrastructure industry, according to people familiar with the matter.

TechCentral writes that the deal would value Vumatel at ZAR1.1 billion (USD93 million). If the deal goes through, Remgro would combine Vumatel with rival Dark Fibre Africa (DFA), in which it owns a majority stake. According to the unnamed sources, talks between DFA and Vumatel started in October and could be concluded within the next two months.

The merger would allow DFA, which has a fibre-optic network of roughly 10,000km, to expand into South Africa’s fibre-to-home (FTTH) market.

Source: Bloomberg