Vodacom gets fibre boost as regulator approves transfer of DFA licences

Published: 2022-11-09 tag: deals

South Africa`s Vodacom moved a step closer to a considerable expansion of its fibre footprint after the country`s telecoms regulator approved the transfer of Dark Fibre Africa`s licences to the mobile operator.

[1/2] A branch South African mobile communications provider Vodacom in Cape Town is shown in this picture taken November 10, 2015. REUTERS/Mike Hutchings

JOHANNESBURG, Nov 9 (Reuters) - South Africa's Vodacom (VODJ.J) moved a step closer to a considerable expansion of its fibre footprint after the country's telecoms regulator approved the transfer of Dark Fibre Africa's licences to the mobile operator.

Vodacom said last November it would pay 6 billion rand ($337.5 million) in cash and certain fibre assets valued at 4.2 billion rand for a 30% stake in a newly formed company called MAZIV, which holds Community Investment Ventures Holdings' (CIVH) Vumatel and Dark Fibre Africa (DFA) fibre assets.

The Independent Communications Authority of South Africa (ICASA) said on Wednesday it had approved the transfer of ownership of DFA's service licences to MAZIV and the transfer of control of the licences to Vodacom effective from Dec. 1.

"We view the transaction as unlikely to negatively impact the market while making the transferee an effective player in the market. Additionally, the Authority views the proposed transaction to be in the best interest of the public," said ICASA's Councillor Luthando Mkumatela.

The approval is subject to the imposition of special licence conditions, the regulator added, while the deal remains subject to Competition Commision approval.

If approved, Vodacom will also transfer its fibre assets to MAZIV.

The deal gives South Africa's largest mobile operator exposure to the country's biggest open access fibre players. Vumatel's footprint passes more than 1.2 million homes, covering over 31,000 kilometres across the country.

DFA is a leading provider of carrier-grade dark fibre - unused optical fibre - specialising in building, installing, and operating a national metro fibre network spanning 13,000 kilometres.

($1 = 17.7794 rand)

The German government on Wednesday blocked prospective Chinese investment in two domestic semiconductor producers after the moves raised concerns over national security and the flow of sensitive technological know-how to Beijing.

Andreas Rinke, Miranda Murray

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.