Sanlam Private Equity, African Rainbow Capital and a minority shareholder have sold a 25.8% stake in MetroFibre Networx to a consortium of existing shareholders. The consortium includes African Infrastructure Investment Managers (AIIM), one of Africa’s largest infrastructure-focused private equity fund managers, along with a consortium comprising South African Housing & Infrastructure Fund (SAHIF), through its Digital Infrastructure Consortium platform and STOA, a foreign investment vehicle-based in France.
This transaction follows the R1.5 billion equity funding round concluded in December 2020 by AIIM, SAHIF and STOA in order to support MetroFibre’s R3 billion capital expansion plan over the next three years.
MetroFibre, which launched in 2010, is a high-growth player in South Africa’s Fibre-To-The-Home (FTTH) and Fibre-To-The-Business (FTTB) markets. Over the last 10 years, MetroFibre has expanded its service offering to both residential and corporate customers in line with its strategic objective of being a diversified operator.
“This rationalisation of the shareholder base will allow MetroFibre Networx to continue with its growth strategy and play a leading role in the sector’s consolidation process, with a strong leadership and operational team and significant shareholders of reference,” MetroFibre CEO, Steve Booysen.
The transaction also introduces the Old Mutual Hybrid Equity Fund 1 General Partnership, managed by Hybrid Equity (HE), a division of Old Mutual Alternative Investments (OMAI), as funding provider to SAHIF, which is owned by Rali Mampeule and Kameel Keshav and is the strategic empowerment partner to MetroFibre Networx.
“As a land fund player, we want to ultimately integrate the use of Digital Fibre and Technology to transform affordable housing into an Integrated Housing Platform,” SAHIF CEO, Rali Mampeule, said.
“We have created a concept called “New Smart City and Smart Living,” a strategy to redefine affordable housing by enabling seamless engagement between the online and offline world.
“This transaction and the resultant increase of our shareholding in MetroFibre compliments this strategy for our group.”