South Africa watchdog gives conditional approval to sale of Octotel

AFRICAN BUSINESS AND ECONOMYAugust 15, 2024 at 7:48 PM UTC

TLDR

Octotel acquisition by African Infrastructure Investment Managers led consortium, including STOA and Thebe Investment Corporation, approved by South African Competition Commission.
Deal follows the sale announcement by UK-based investment firm Actis in March 2024 after Octotel's expansion period.
Competition Commission's approval signifies no significant impact on competition within the telecommunications infrastructure market, enabling the transaction to move forward.

The South African Competition Commission has conditionally approved the acquisition of Octotel, a South African fiber network operator, by a consortium led by African Infrastructure Investment Managers, which includes STOA and Thebe Investment Corporation.

This deal comes after a period of significant expansion for Octotel under the ownership of UK-based investment firm Actis, which announced the sale in March 2024.

The Competition Commission, in approval, stated that the transaction is unlikely to "substantially lessen or prevent" competition within the telecommunications infrastructure market, thus allowing the deal to proceed.

Key Takeaways

In December 2020, Actis acquired a majority stake in Octotel for R2.3 billion ($128.5 million), focusing on leveraging the increasing demand for high-speed connectivity and the rising data consumption in South Africa. Actis’s investment strategy centered on expanding the reach of Octotel's fiber network to more households and boosting adoption rates. This strategy resulted in significant growth, with the number of homes passed by the fiber network rising from 195,000 to 350,000, and connected customers increasing from 56,000 to 110,000 during the investment period.

Business

South Africa

Telecommunication

AIIM

STOA

Thebe Investment Corporation

Actis

Acqusition

Digital Infrastructure

Private Equity