In a deal meant to reshape South Africa’s digital landscape, Frogfoot, Vox, and Hypa have secured a massive capital injection that values the combined entities at a staggering R14.4 billion.
The strategic investment is set to accelerate fibre access across the country, with a specific focus on bridging the digital divide in previously underserved and lower-income township communities.
The transaction introduces significant equity capital and additional leverage to strengthen the companies, enabling them to quadruple their annual fibre rollout to an ambitious 360,000 connected homes. B
eyond connectivity, the expansion is projected to create over 5,000 direct jobs in local communities over the next 12 months, delivering a dual punch of economic empowerment and digital inclusion.
Key Highlights of the Deal
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Combined Valuation: R14.4 billion
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Post-Debt Equity Value: R8.4 billion
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Rollout Acceleration: 360,000 homes per annum (fourfold increase)
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Job Creation: Over 5,000 direct local jobs
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Focus Area: Lower-income townships and underserved communities
The transaction includes a subscription for new shares in both Frogfoot and Vox (including its wholly owned subsidiary Hypa) by multiple incoming investors, who add both strategic and economic value to the companies.
Who Are the New Investors Driving This Expansion?
The newly formed shareholder structure brings together a powerful consortium of financial and strategic heavyweights:
The largest shareholder grouping is the DNI Consortium, which comprises DNI 4PL Contracts (DNI), JSE listed Sabvest Capital Limited (Sabcap), Masimong Group Holdings (Masimong), and Draper Gain International.
The second major shareholder grouping consists of two partnerships managed by the general partners of Metier Capital Growth Fund III. EM-Three Investment Holdings (EM3), is the third largest direct shareholder and is a private investment company founded by Simphiwe Mehlomakulu.
The transaction incorporates direct management equity participation, further aligning executive leadership with long-term shareholder value. Notably, no single shareholder controls Frogfoot or Vox at present, and no shareholder will hold a controlling interest post-implementation.
Abraham van der Merwe, who will lead the companies as Chief Executive Officer alongside Gert Koen as Chief Financial Officer, highlighted the societal stakes of the rollout:
“This capital raise is designed for societal impact at scale. Every additional home we reach in a township or lower-income community represents another family gaining access to the digital opportunities made possible by fibre.
“Closing the digital divide is critical because it enhances access to education, financial inclusion, remote work, and local micro-enterprises.
“The additional capital raised strengthens the companies materially and allows us to significantly step up our rollout velocity.”
The Three Pillars: Frogfoot, Vox, and Hypa
The companies operate across three distinct, highly complementary pillars that cover the entire connectivity value chain:
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Frogfoot Networks: South Africa’s fourth-largest fibre network operator (FNO), delivering FTTH, FTTB, and FTTT infrastructure established over 25 years ago.
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Vox: A national internet service provider serving businesses, public-sector customers, and households across South Africa with fixed and wireless connectivity, voice, data, cloud, collaboration, and cybersecurity services.
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Hypa Fibre: A dedicated broadband provider delivering prepaid fibre products to lower-income households across the Vuma Reach, Openserve, and Frogfoot Rise networks.
Industry Leaders Weigh In on the Transformative Investment
Leadership across the board emphasised that this is not just a financial transaction, but a mission-driven initiative to democratize internet access.
Dr. Ryan Noach, Group CEO of DNI, underscored the philosophical alignment between the consortium and the company’s mission:
“DNI, Frogfoot and Vox share a conviction that affordable, high-speed internet access is a social imperative. DNI’s philosophy is to partner with and support world-class founders and managers. By bringing complementary experience in the telecommunications sector alongside high-quality financial partners, we are empowering an experienced management team to accelerate digital inclusion across South Africa.”
Simphiwe Mehlomakulu, Founder of EM3, noted the sustainable value creation embedded in the expansion strategy:
“Frogfoot, Vox and Hypa have built strong, resilient businesses that play an important role in expanding digital access across South Africa. This transaction brings together high-quality investors who share a long-term vision for the Group and provides the capital required to accelerate growth significantly. We are particularly excited about the opportunity to deepen connectivity in underserved communities, creating meaningful economic and social impact while delivering sustainable value for all stakeholders.”
Accelerating Fibre Access to Underserved Communities
With this new growth capital, Frogfoot will materially accelerate the physical expansion of high-speed fibre to lower-income areas. The immediate focus is on scaling the rollout velocity to ensure that 360,000 homes are passed annually, driving digital literacy, remote work capabilities, and financial inclusion in areas that have historically been left behind.
RMB, the Corporate and Investment banking division of FirstRand, served as Financial and Transaction advisor and funder to the companies, facilitating this landmark transaction.
Grant Howarth, Principal at Metier, reflected on the long-term journey and the power of collaborative synergy:
“Metier is proud to renew its commitment to Frogfoot and Vox, having witnessed their remarkable evolution over the last twenty years. We look forward to reinvesting alongside the high-calibre leadership team and are eager to collaborate with our new partners to leverage their unique operational synergies. This collective effort will empower the companies to expand further across South Africa’s underserved regions with an impact that will be felt in the everyday lives of those communities.”
