MTN paid ZAR408m for Afrihost

4 Mar 2015

South African mobile operator MTN has paid ZAR408 million (USD34.6 million) for a 50% stake (plus one share) in internet service provider (ISP) Afrihost, TechCentral reports. According to MTN’s financial report, the acquisition of Afrihost, which has been incorporated under MTN’s newly centralised enterprise business unit, ‘will be important in supporting [MTN’s] ambitions in this area’, as it ‘will enable the group to drive its accelerated SME strategy and provide scale for the group’s virtual market, content and cloud offering.’

As previously reported by CommsUpdate, in June 2014 it emerged that MTN was in the process of acquiring 50% of Afrihost, while existing shareholders, including the company’s management, will retain the remainder. The deal was approved by the country’s Competition Tribunal in November 2014, on the recommendation of the Competition Commission (CompCom).

South Africa, Afrihost (incl. Axxess), MTN South Africa