South Africa: AIIM becomes majority shareholder of broadband Internet service provider MetroFibre
(Ecofin Agency) – South African broadband connectivity provider MetroFibre wants to expand its presence in the country to meet accelerating demand. As such, it opened 25% of its capital to investors.
African Infrastructure Investment Managers (AIIM) recently completed the acquisition of an additional 25.8% stake in South African broadband connectivity provider MetroFibre Networx. This transaction makes AIIM the majority shareholder of MetroFibre with 37% of the overall stake. In the release announcing the completion, AIIM advises that the additional stake has been acquired”alongside a consortium made up of the South African Housing & Infrastructure Fund (SAHIF) and STOA, a foreign investment vehicle based in France.” By 2020, the three partners had invested 1.5 billion rand ($92.3 million).
By becoming MetroFibre’s majority shareholder, AIIM will provide the company with the capital needed to achieve its growth ambitions. “MetroFibre has accelerated its rollout to such an extent that it is now one of the largest fiber-to-the-home players in South Africa by number of homes exceeded, but there is still a long way to go to solve the connectivity issues in the country.“said Thor Corry, Chief Investment Officer of AIIM.
The deal, announced in June 2021, was completed following approval by the Independent Communications Authority of South Africa (ICASA).
“We continue to pursue innovative approaches to address South Africa’s connectivity gaps and are pioneering unique solutions that meet customers with different needs.“, added MetroFibre CEO Jan-Jan Bezuidenhout (pictured).
“MetroFibre has accelerated its fiber rollout with over 350,000 homes served as of April 31, 2022, and we aim to serve an additional 500,000 homes by 2025,” he added.
Isaac K. Kassouwi