RSAWeb sale gets final approval

The Competition Tribunal has approved Tario 892’s acquisition of Internet service provider (ISP) RSAWeb without conditions.

This comes after the Competition Commission recommended that the Tribunal approve the transaction in January 2025.

“Following the implementation of the proposed transaction, Tario 892 will exercise sole control over RSAWeb,” the Tribunal said in a statement.

Cape Town-based Tario 892 already holds shares in fibre network operators 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.

“Tario 892, through MetroFibre, is a fibre network operator and Internet service provider,” the Tribunal wrote.

“It owns and manages open access carrier-class ethernet infrastructure, providing fibre connectivity in Gauteng, KwaZulu-Natal, Eastern Cape, North West, and Mpumalanga.”

Through Octotel, it operates an open access fibre network in the Western Cape.

It now has the green light to acquire RSAWeb, a downstream Internet service provider focused on FTTH and FTTB services.

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

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

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

It headed a consortium, comprising STOA and Thebe Investment Corporation, that agreed to acquire Octotel from Actis in March 2023. It was also revealed that it was buying a minority stake in RSAWeb.

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

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

AIIM’s investment director, Thor Corry, said the firm was excited about the transaction.

“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,” said Corry.

“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 — R2.3 billion in 2020 — was a major success.