Fibre21.01.2025

RSAWeb sale greenlit

South Africa’s Competition Commission has recommended that the Competition Tribunal approve the proposed transaction through which Tario 892 intends to acquire RSAWeb.

The Cape Town-based firm already holds shares in fibre network operators (FNOs) MetroFibre and Octotel, both of which provide open-access fibre networks and offer fibre-to-the-home (FTTH) and fibre-to-the-business (FTTB) products.

The former provides fibre connectivity in five provinces in South Africa. At the same time, Octotel operates an open-access fibre network in the greater Cape Town area and other parts of the Western Cape.

Tario 892 is now looking to acquire RSAWeb, a downstream Internet service provider (ISP) focused on retail FTTH and FTTB services.

It also offers cloud infrastructure, enterprise connectivity, and mobile data management services.

“The Commission is of the view that the proposed transaction is unlikely to substantially prevent or lessen competition in any market. The proposed transaction does not raise significant public interest concerns,” the Competition Commission said.

Tario 982 lists its business address as African Infrastructure Investment Managers (AIIM) in Newlands, Cape Town.

AIIM, which forms part of Old Mutual Alternative Investments, is the largest shareholder in MetroFibre.

It led a consortium that agreed to acquire Octotel from Actis in March 2023. At the time, it was also revealed that the consortium was acquiring a minority stake in RSAWeb.

Actis had acquired a controlling stake in Octotel for R2.3 billion in 2020.

The AIIM-led consortium also comprises STOA and Thebe Investment Corporation. STOA holds a stake in MetroFibre.

“Joining forces with AIIM, STOA, and Thebe marks an exciting chapter for Octotel and RSAWeb,” said Octotel CEO Trevor van Zyl.

“Together, we are poised to accelerate our mission of delivering cutting-edge connectivity solutions, bolstering economic growth and fostering innovation across the region.”

AIIM investment director Thor Corry said at the time that the firm was excited about the acquisition.

“We look forward to empowering their world-class management team to continue to drive connectivity in the Western Cape and contribute to the ongoing digital transformation in South Africa,” he said.

“The acquisition represents a landmark transaction for the IDEAS Fund and adds to the portfolio’s compliment of high-quality growth infrastructure assets.”

Actis partner David Cooke said the firm’s investment in Octotel had been a major success. Cooke heads up Actis’s digital infrastructure and said the sale adds to its robust track record in digital infrastructure.

“Together with the exceptional management team, we have been able to scale the platform and generate significant returns for our investors while driving positive social impact,” he said.

“The South African market remains of significant interest and we expect to see considerable growth in South Africa’s digital infrastructure, driven by strong secular tailwinds like rising data consumption and internet penetration.”


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