South African investment group Mvelaphanda Group (Mvela) will buy 12,3% of telecommunications firm Vox Telecom for R292,3-million in cash, the group said on Thursday.
Mvelaphanda said in a statement that Vox Telecom — which provides voice and data services — is ideally placed to benefit from the development of the South African telecoms industry.
Mvelaphanda CEO Yolanda Cuba said the investment provides the group with key strategic positioning over a unique range of operating telecom assets.
”As a leading alternative, independent telecommunications operator we have chosen Vox Telecom as a key focus of our investment in the provision of voice
and data services to the telecommunications market and see Vox Telecom as the vehicle for our investment strategy in this industry in Africa,” Cuba said.
Vox Telecom is ideally positioned to benefit from the further development of the South African telecom industry.
”We will work with the management of Vox Telecom to facilitate Vox Telecom’s licensing obligations and enable Vox Telecom to further grow its business in the corporate and government sector,” Cuba added.
The investment is expected to grow Mvela’s intrinsic net asset value and ultimately improve the return earned on its capital employed.
”We will continue to seek opportunities to increase our investment in Vox Telecom,” Cuba added.
Mvela’s subscription for 110-million Vox Telecom shares is subject to regulatory approval.
The transactions will not have a material financial effect on Mvelaphanda Group for the financial year ending 30 June 2008. – Reuters