SOUTH AFRICA – A consortium led by African Infrastructure Investment Managers (AIIM) has announced it has signed an agreement to acquire fibre network operator Octotel.
In addition, the consortium has acquired a minority stake in RSAWeb, a South African-focused internet service provider. Both transactions are subject to customary regulatory approvals and closing conditions.
According to a statement, the AIIM-led consortium acquired Octotel from Actis, an investor in sustainable infrastructure.
An infrastructure-focused private equity fund manager, AIIM is a division of Old Mutual Alternative Investments, and also comprises STOA and Thebe Investment Corporation.
“Joining forces with AIIM, STOA and Thebe marks an exciting chapter for Octotel and RSAWeb. Together, we are poised to accelerate our mission of delivering cutting-edge connectivity solutions, bolstering economic growth and fostering innovation across the region,” Trevor Van Zyl, CEO of Octotel, said.
The company’s open access fibre network passes approximately 350 000 homes and caters to over 110 000 homes and businesses, up from 195 000 and 56 000 respectively.
According to the statement, with this transaction, the consortium has committed to support Octotel’s network expansion as well as expanding into new segments.
AIIM and Thebe with whom we share a common goal for the development of the South African telecommunications sector, and we are looking forward to supporting the management to take advantage of new opportunities to ensure a fruitful growth.
This transaction reinforces STOA’s long-term commitment to the deployment of affordable, reliable and fast connectivity in Africa.”
“The core of Thebe’s investment strategy is to build communities by partnering with the right teams and investing in highly successful world-class businesses that are involved in sectors that drive economic growth and transformation,” states Rapulane Mabelane, Thebe‘s chief investment officer.
“One of the objectives of the National Development Plan is to bridge the digital divide. Through this transaction, we aim to play our part in expanding the high-speed fibre network into greater parts of the Western Cape.”
David Cooke, partner, digital infrastructure at Actis, added that Octotel has proved to be an excellent investment for Actis.
“The sale of Octotel adds to the strong track record Actis has in digital infrastructure. Digital represents an important sector for Actis and we’ve got an exciting investment pipeline for the sector, unlocking opportunities globally, with US$1.5 billion committed to the sector worldwide,” he said.
“The South African market remains of significant interest and we expect to see considerable growth in South Africa’s digital infrastructure, driven by strong secular tailwinds like rising data consumption and internet penetration.”
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