Vumatel and Investec have concluded a deal in which the specialist bank and asset manager acquired a minority stake in the fibre service provider.
The two companies said that Investec has committed a significant equity investment into Vumatel.
Vumatel is a fibre infrastructure provider which is credited with helping to ignite a fibre to the home (FTTH) boom in Johannesburg suburbs such as Parkhurst.
“We are very excited about our investment in Vumatel. We like the business and the experience of the management team. They have lead the FTTH revolution in South Africa, setting the bar for the industry in how it should be done,” said Kobus Viljoen of Investec.
“Their commitment to creating affordable high speed open access fibrehoods through focus on customer service will have a fundamental impact on the telecommunications industry,” Viljoen said.
Niel Schoeman, CEO Vumatel said that with Investec’s support, Vumatel will be better positioned to accelerate its roll-out to communities across South Africa.
“This partnership will furthermore assist in speeding up both transformation within the economy and changing the lives of consumers,” said Schoeman.
He said that the investment gives Vumatel the ability to connect up to 100,000 homes by 2016 and further entrench Vumatel as the leading FTTH player in the market.