Investec's Vox stake now at 15%

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 30 Aug 2011

Listed financial services company Investec Bank has bought more shares in Vox Telecom, taking its total holding to 15.01%.

The acquisition of stock is part of a R499 million offer from a consortium composed of the Lereko Metier Capital Growth Fund and Investec Bank, to buy out Vox at 45c a share.

The deal, announced last month, will see Vox delisted from the JSE.

In a statement issued to shareholders this morning, Vox said Investec Bank has acquired a total of 166.4 million shares, taking its stake to 15.01%.

The consortium now owns a total of 441.8 million shares, equivalent to 39.85% of Vox, up from the 36.9% it had earlier this month. The Lereko Metier Capital Growth Fund had an existing 24.8% stake.

Last month, the telecoms company said shareholders could opt to keep their investment in Vox, swapping 10 shares in Vox for one in the consortium. Shareholders also had the option of selecting to sell some shares and swap others for a stake in the consortium.

Vox wants to delist from the JSE to focus on its business strategy without having to deal with compliance requirements. It noted, at the time, that there was “potential for pressure on short-term profitability”.

The company has changed its focus and is moving least-cost routing (LCR) customers onto a new network, Cristal Vox. The shift is necessary because lower mobile termination rates have been eroding traditional LCR margins.

In its half-year results to February, Vox reported revenue 11% lower, at R925 million, from R1 billion a year ago. Net profit was slightly lower, at R23.9 million, from R25.5 million.

Vox's shares closed flat at 45c yesterday.