DLA Piper advise CIVH on proposed Vodacom investment

DLA Piper has advised Community Investment Ventures Holdings Proprietary Limited (CIVH) on the proposed acquisition by the Vodacom Group of a 30% indirect stake in Vumatel Proprietary Limited (Vumatel) and Dark Fibre Africa Proprietary Limited (DFA), in a deal valued at approximately R13.2 billion.

CIVH owns and operates electronic communications infrastructure through various wholly-owned subsidiaries, including Vumatel and DFA. As part of the transaction announced last week, CIVH will first undergo a group restructure whereby its shareholding in Vumatel and DFA will be transferred to a newly formed subsidiary entity, following which Vodacom will acquire a 30% stake in the new entity. The transaction is subject to regulatory approvals.

Vumatel is South Africa’s leading fibre network operator which builds, owns and operates a high-speed ‘fibre to the home’ network using an open access model. Its network reaches over 1.2 million homes and has deployed over 31,000 km’s of fibre infrastructure across South Africa.

DFA is a leading provider of carrier grade dark fibre, specialising in building, installing, and operating national metro and access fibre infrastructure across South Africa, supplying a range of dark fibre and active managed fibre products to telecommunication operators and other enterprises. DFA owns and operates a long distance and metro fibre network spanning in excess of 13,000 km and 37,000 connected circuits and typically secures long term contracts with its customers providing stable, secure revenues.

The DLA Piper South Africa team was led by Marita van der Walt (director, corporate), together with corporate team members Nada van Dyk (director), Peter Bradshaw (director and location head), Brian Malcomess and Rakhee Singh (both senior associates), Menzi Jali (associate), competition team members Janine Simpson and Werner Rysbergen (both directors), Kea Mathobela (associate) and tax director Andrew Lewis.

DLA Piper previously advised CIVH on the acquisition of Vumatel. This transaction was named South African Private Equity Deal of the Year 2018 at the annual Dealmakers Awards in South Africa.