ARC stake in Metrofibre sold
African Rainbow Capital (ARC) Investments has sold its stake in Metrofibre Networx and expects to receive the cash this week.
Responding to questions during an investor call on Thursday, ARC co-CEO Johan van Zyl said he expects the money to clear into their bank account any day now.
ARC first announced the sale of its Metrofibre stake in September last year.
Van Zyl said that after careful consideration, they determined that the company had matured, News24 reported.
ARC believes that Metrofibre is becoming more of an infrastructure play that will require ongoing investment.
In its interim results for the six months ended 31 December 2021, ARC valued its 8.67% stake at R275 million.
In June last year, African Infrastructure Investment Managers (AIIM) announced that it agreed to acquire a 25.8% interest in Metrofibre together with a consortium.
The consortium comprises the South African Housing & Infrastructure Fund through its Digital Infrastructure Consortium platform, and STOA, a French foreign investment vehicle.
AIIM announced that the 25.8% stake would be acquired from Sanlam Private Equity, African Rainbow Capital, and a minority shareholder.
The Competition Tribunal unconditionally approved the deal on 31 August 2021.
“This transaction secures AIIM’s investment vehicle Digital Infrastructure Investment Holdings as the largest single shareholder in MFN,” said AIIM investment director Ed Stumpf.
Stumpf also said it underlines AIIM and the broader Old Mutual Alternative Investment Group’s continued support for the MetroFibre team as a platform for connectivity growth in South Africa.
“AIIM continues to see strong growth potential for quality high-speed digital infrastructure in South Africa and is excited to work together with the MFN management team and our partners SAHIF and STOA to deliver infrastructure which connects South Africans and enables the digital economy.”
Loading ...