Vodacom South Africa has entered into an agreement to acquire a co-controlling interest in all of the material assets currently owned by Community Investment Ventures Holdings (CIVH), including Vumatel and Dark Fibre Africa (DFA). On completion of the transaction, Vodacom will hold a 30% equity interest in a newly formed entity known as InfraCo, that will house these assets as well as certain fibre assets which Vodacom will contribute into InfraCo.
In order to facilitate the transaction, Vodacom will subscribe for new shares in InfraCo in return for ZAR6.0 billion (USD390.7 million) in cash, while contributing its own fibre assets (valued at ZAR4.2 billion) in exchange for new shares. CIVH will hold a 70% co-controlling interest in InfraCo and existing CIVH investors including Remgro Limited and New GX Investments will remain invested in CIVH.
In operational terms, Vumatel’s fibre-to-the-home (FTTH) network currently spans 31,000km and passes over 1.2 million homes, while DFA operates a national metro and access fibre infrastructure across South Africa; DFA’s network encompasses 13,000km of fibre.