Internet service provider Webafrica is for sale, and a few prominent Internet service providers (ISPs) and big telecoms players are looking to buy the company.
Webafrica states on its website that has around 60,000 customers and 120 staff members between its Cape Town office and Johannesburg offices.
While it does not provide a technology breakdown, industry feedback suggests that it has approximately 30,000 fibre, 20,000 DSL and 10,000 fixed LTE subscribers.
Many of the companies which have been linked to a potential deal are mainly interested in Webafrica’s fibre subscribers.
Industry speculation on Webafrica’s value
MyBroadband has received information that while Webafrica has been struggling to turn a profit, the company’s future prospects are looking positive.
It is this positive outlook and growing fibre subscriber base which companies are interested in and which account for most of Webafrica’s value.
Three independent industry sources with good knowledge of Webafrica’s operations valued the company at between R200 million and R300 million.
One source told MyBroadband that the final selling price will depend on the synergy between Webafrica and the prospective buyers.
If a company sees great value in Webafrica’s subscriber base and skills, it could see an offer of close to R300 million.
If the company is mostly interested in Webafrica’s fibre subscriber base, however, the offer is likely to be closer to R200 million.
No sale yet
Webafrica CEO Tim Wyatt-Gunning told MyBroadband that Webafrica has not been sold and that “the owners of Webafrica remain the same in all aspects”.
He added that the owners remain focused on the rapid growth of the business, which includes the recent launch of its Telkom month-to-month LTE products and its ongoing network migration.