Vodacom in talks to buy Vumatel, DFA

Source: Telecom Paper

Vodacom South Africa is in discussions with Remgro to acquire Community Investment Ventures Holdings (CIVH), which owns Vumatel and Dark Fibre Africa (DFA), reports MyBroadband citing sources.

Remgro said it does not comment on speculation. CIVH acquired 34.9 percent of Vumatel for an undisclosed amount in June 2018 and the remaining 65.1 percent in May 2019.

Vodacom’s interest in Vumatel did not die down after the CIVH acquisition. The two companies started discussions in May 2018, when Vodacom CEO Shameel Joosub said the operator wanted to become a bigger player in the fibre-to-the-home market.

After the acquisition, Vumatel started working in tandem with DFA to provide fibre access to South African businesses and homes. Their fibre rollout in recent years is impressive. Vumatel and DFA’s 29 300km fibre network serves every key metro in South Africa. It passes 690 000 premises and connects 11 500 mobile base stations and 240 000 homes and businesses.

MyBroadband said the details of what such a deal may look like remain sketchy but it is widely accepted that Vodacom would have to pay a premium for this asset. Remgro has invested a large amount of money and resources into building CIVH into a strong fibre player.

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