RMB facilitates Octotel acquisition

Media Release

September 2024

RMB facilitates landmark fibre infrastructure acquisition

RMB acted as the sole mandated lead arranger to fund the acquisition of Octotel, Cape Town and the Western Cape's leading Open Access fibre network operator. This landmark transaction underscores RMB’s commitment to advancing investment in South Africa’s next-generation telecommunications infrastructure.

Octotel has been acquired by a consortium consisting of African Infrastructure Investment Managers (AIIM), one of Africa’s largest infrastructure-focused private equity fund managers and a division of Old Mutual Alternative Investments, STOA, a prominent impact fund dedicated to infrastructure and energy in developing and emerging markets, and Thebe Investment Corporation, a leading South African black-owned and black managed investment management company.

RMB’s comprehensive understanding of the fibre industry, combined with its strong relationships with all stakeholders involved, ensured the successful structuring of a flexible debt package. All parties involved in the transaction leaned on RMB’s expertise to close the deal quickly under accelerated timelines. This transaction highlights RMB’s position as a leader in facilitating high-impact transactions within the African digital infrastructure landscape.

“RMB was uniquely positioned to execute this transaction and facilitate the buyout. We have a long history as a trusted advisor to Octotel, dating back to 2018, a strong relationship with Thebe as their bankers of choice, and we have been banking AIIM for several years. We also successfully facilitated Actis’ previous acquisition, when Actis acquired the business from Pembani Remgro and other shareholders, acting as corporate finance advisors for the sellers and sole MLA for the acquisition finance package,” says Anushka Wohlberg from the Investment Banking Division of RMB.

The acquisition aligns with RMB’s strategic vision to foster investment into digital infrastructure, including fibre and data centres, in support of keeping South Africa and the African continent at the forefront of the digital economy.

“This transaction provides Octotel the opportunity to continue driving connectivity in the Western Cape and contribute to the ongoing digital transformation in South Africa. In addition, RMB’s partnership with Octotel and Actis, following Actis’ investment in 2020, helped fund notable benefits for the communities that Octotel serves. This includes increasing the total number of homes and businesses enabled with fibre infrastructure to more than 365 000 including a large proportion in LSM’s 6 and below, as well as connecting over 145 schools with high quality fibre connections, thereby providing approximately 62 000 learners with the benefit of reliable connectivity for education purposes,”  says Trevor van Zyl, Chief Executive Officer at Octotel.

“This acquisition represents a significant milestone in the South African fibre market, setting the stage for future growth within the industry. The ability to single bank this deal demonstrates our capability to execute complex transactions efficiently. This acquisition not only consolidates our relationship with Octotel but also strengthens our partnerships with AIIM, STOA, and Thebe.” Wohlberg concludes.

Ends