Internet Service Provider Afrihost recently announced that it has offered to purchase the entire share capital of Axxess DSL (Pty) Ltd (Axxess). The transaction should be concluded in early August 2011.
“Combining two entities like this makes the sum more valuable than the individual parts,” said Payne.
Details of the deal
Payne explained that the deal with Axxess is a part cash, part equity acquisition where all the previous Axxess shareholders were bought out, with the exception of Angus Macrobert who became a new minority shareholder in Afrihost.
Payne said that the sale amount is confidential and that he could hence not reveal the value of the deal.
Rumors began circulating that the Afrihost-Axxess deal was concluded before MacRobert joined Vox Telecom as joint-CEO, a move which would then pave the way for a possible Afrihost acquisition by Vox Telecom.
Payne however debunked these rumours, saying that they are not in discussions with a larger company like Vox Telecom.