Afrihost offers share buyout to new owner MTN

27 May 2016

The board of directors of South African ISP Afrihost has reportedly made an offer to MTN to buy back MTN’s 50% stake in Afrihost, MyBroadband reports. According to unnamed sources familiar with the matter, discussions between Afrihost and MTN regarding Afrihost’s offer are at an advanced stage. As previously reported by TeleGeography’s CommsUpdate, in June 2014 MTN announced plans to acquire 50% (plus one share) of Afrihost’s capital, with the deal approved by the country’s Competition Tribunal on the recommendation of the Competition Commission (CompCom) in November that year. Afrihost highlighted at the time that the partnership with MTN would bring more opportunities to its clients, by leveraging MTN’s significant investment in broadband and other technologies. The ISP, however, has experienced a number of network issues since, with its decision to propose the share buyout reportedly prompted by ‘challenges associated with MTN shareholding.’

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