South African operator Vox Telecom has announced that it has received a firm offer from Lereko Metier Capital Growth Fund and Investec Bank to acquire 100% of the company’s shares. Vox shareholders are being given the opportunity to relinquish their respective investments via an offer of ZAR0.45 (USD0.06) per Vox share, or maintain their investment and receive one BidCo share for every ten Vox shares, or opt to take up a combination of both options. The scheme currently carries the support of 40.1% of Vox’s existing shareholders and 53.4% of shareholders entitled to vote. The offer follows the completion of a limited due diligence process by the consortium, and is subject to the fulfilment of a number of conditions in respect of the scheme, including: approval by the Johannesburg Stock Exchange (JSE), South Africa Reserve Bank, the Takeover Regulation Panel and the South African competition authorities.
The Vox board believes that without the costs and compliance requirements that come with being a listed entity, the company can realise its goals more effectively, noting that its private equity shareholders are all long term investors that are committed to building the business by supporting its plans as required. Vox CEO Doug Reed commented: ‘This transaction, if approved, will see Vox benefit from the backing of strong and experienced shareholders, while the delisting frees management to focus on sustainable value creation without the short term reporting pressures of the public market… The ultimate beneficiaries will be our employees and our customers’.