AIIM makes follow-on investment in South African fibre company
African Infrastructure Investment Managers (AIIM), one of Africa’s largest infrastructure-focused private equity fund managers, along with a consortium comprising South African Housing & Infrastructure Fund (SAHIF), through its Digital Infrastructure Consortium platform and STOA, a foreign investment vehicle based in France, have agreed to acquire a 25.8% interest in MetroFibre Networx (MFN) held by Sanlam Private Equity, African Rainbow Capital and a minority shareholder. This transaction follows the ZAR1.5 billion (about $108.8 million) equity funding round concluded in December 2020 by AIIM, SAHIF and STOA in order to support MetroFibre’s ZAR3 billion (about $217.6 million) capital expansion plan over the next three years.
The transaction also introduces the Old Mutual Hybrid Equity Fund 1 General Partnership, managed by Hybrid Equity (HE), a division of Old Mutual Alternative Investments (OMAI), as funding provider to SAHIF, which is owned by Rali Mampeule and Kameel Keshav and is the strategic empowerment partner to MFN.
The acquisition remains subject to regulatory approvals and is envisaged to reach financial close during the second half of 2021.
The investment reinforces AIIM, SAHIF and STOA’s belief in the potential of the digital infrastructure sector in South Africa and their support for the management team of MFN.
MetroFibre, which was launched in 2010, is a high-growth player in South Africa’s fibre-to-the-home (FTTH) and fibre-to-the-business (FTTB) markets. Over the last 10 years, MetroFibre has expanded its service offering to both residential and corporate customers, in line with its strategic objective of being a diversified operator. MetroFibre owns and manages its core network which is a globally compliant Carrier Ethernet 2.0 open access network.
Commenting on the transaction, Ed Stumpf, AIIM’s investment director noted, “This transaction secures AIIM’s investment vehicle Digital Infrastructure Investment Holdings as the largest single shareholder in MFN and underlines AIIM and the broader Old Mutual Alternative Investment Group’s continued support for the MetroFibre team as a platform for connectivity growth in South Africa. In addition to the significant ramp up in digital volumes as a result of telecommuting during the pandemic, AIIM continues to see strong growth potential for quality high-speed digital infrastructure in South Africa and is excited to work together with the MFN management team and our partners SAHIF and STOA to deliver infrastructure which connects South Africans and enables the digital economy.”
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