by MTHULISI SIBANDA
JOHANNESBURG, (CAJ News) – THE merging parties are confident that the Competition Tribunal will approve the deal between Vodacom and Vumatel.
This is in relation to the transaction entered into between Community Investment Ventures Holdings (CIVH) and Vodacom.
On completion of the transaction, Vodacom will hold an equity interest of between 30 percent and 40 percent in Maziv Proprietary, which holds the material assets owned by CIVH, including Vumatel and Dark Fibre Africa.
Maziv will acquire selected Vodacom fibre assets, as detailed in the terms announcement.
The transaction remains subject to the approval of the South African regulatory authorities, with the Competition Commission announcing its non-binding recommendation to the Competition Tribunal to prohibit the transaction.
“Remgro and CIVH remain committed to the transaction and firmly believe that, should the implementation of the transaction ultimately be permitted by the Tribunal, it will deliver significant benefits to South African consumers and the broader economy,” Remgro stated.
The Johannesburg-listed firm believes Vodacom’s proposed investment in excess of R10 billion (US$531 million) in terms of the transaction will increase competition given that Vodacom-owned fibre assets will be made available on an open access,
transparent and non-discriminatory basis to the market.
In addition, the investment will enable Maziv to extend fibre infrastructure to new households within previously underserved, lower income areas, create new jobs and facilitate the creation of small to medium enterprises through a fund formed specifically for this purpose.
The merging parties are confident that the merger will continue to promote employment and advance the social economic welfare of South Africans, promote digital inclusion, provide consumers with competitive prices as well as product choices enable small and medium enterprises to have an equitable opportunity for economic participation.
– CAJ News