Transaction Summary
Vumatel (Pty) Ltd (Vumatel), a South African licensed fibre infrastructure provider, has completed the full acquisition of Herotel Telecoms (Pty) Ltd (Herotel), a national internet service provider (ISP), founded in 2013. The transaction follows Vumatel’s gradual acquisition strategy, having initially secured a 45% stake in Herotel in 2022, later increasing its holdings to 49.96% before 2025. The Competition Commission of South Africa (CCSA) has recommended conditional approval of the transaction to the Competition Tribunal, requiring Vumatel to uphold open-access principles and ensure fair, non-discriminatory pricing. The buyout strengthens Vumatel’s fibre-to-the-home (FTTH) expansion strategy, particularly in underserved communities and secondary cities. Herotel is set to expand its fibre pipeline by an additional 400,000 stands in townships. Vumatel, wholly owned by Community Investment Ventures Holdings (Pty) Ltd (CIVH), has also committed to rolling out FTTH in low-income areas as part of the deal’s public interest conditions.
Terms
- Investors: Vumatel
- Target: Herotel
- Financing Type:
