Remgro has no plan to sell its shareholding in Vumatel or DFA – CIVH Chairman

Remgro has dismissed speculation that it plans to sell any of its shareholding in fibre operators Vumatel and Dark Fibre Africa (DFA).

Bloomberg reported on 25 November that billionaire Johann Rupert was considering selling stakes in Vumatel and DFA valued up to R22 billion.

Rupert owns shares in Remgro, which in turn is a shareholder in Community Investment Ventures Holdings (CIVH). CIVH owns both Vumatel and DFA.

According to the report, Rupert was working with an adviser to gauge interest from potential investors in buying shares in Vumatel and DFA.

Bidders could include local telecommunications companies as well as infrastructure funds, Bloomberg reported.

No plans to sell shares

Remgro executive for strategic investments and CIVH chairman Pieter Uys told MyBroadband that Remgro has no plans to sell its shareholding in CIVH.

Uys added that DFA and Vumatel are affiliates of CIVH and that they have no plans to reduce their shareholding in these companies.

He said CIVH is one of Remgro’s strategic investments and it continues to invest in and grow the company.

Uys added that CIVH continues to look for opportunities to grow its telecommunications portfolio. Their interests include data centres, mobile, and Internet of Things (IoT) networks.

He did, however, say that it is possible that the company may dilute its shareholding in CIVH in future as part of a BEE deal.

Uys told MyBroadband that Remgro is looking at CIVH’s capital structure, its debt, and its equity, which may result in a new capital structure.

Now read: Billionaire Johann Rupert considers selling R22-billion stake in Vumatel and DFA

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Remgro has no plan to sell its shareholding in Vumatel or DFA – CIVH Chairman