RMB served as the sole mandated lead arranger for the acquisition of Octotel, the leading Open Access fibre network operator in Cape Town and the Western Cape. This significant transaction reflects RMB’s dedication to supporting investment in South Africa’s next-generation telecommunications infrastructure.
Octotel has been acquired by a consortium comprising 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 focused on infrastructure and energy in developing markets, and Thebe Investment Corporation, a leading South African black-owned and managed investment firm.
In March, global private equity firm Actis announcedi it has sold Octotel to a consortium led b AIIM.
RMB’s deep understanding of the fibre industry, alongside its strong relationships with all stakeholders, enabled the structuring of a flexible debt package. The expertise of RMB allowed the transaction to be completed swiftly within accelerated timelines, reinforcing the bank’s position as a leader in facilitating high-impact deals in Africa’s digital infrastructure sector.
“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 RMB’s Investment Banking Division.
The acquisition aligns with RMB’s strategic vision of fostering investment in digital infrastructure, such as fibre and data centres, to ensure that South Africa and the African continent remain 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.
