Local telecoms and connectivity businesses Frogfoot Networks, Vox and Hypa have secured new equity capital and debt facilities in a transaction that values the companies at R14.4 billion.
The three sister firms sit under Vivica Group: Vox is the main telecoms business, while fibre infrastructure provider Frogfoot and Hypa, a broadband services firm, are its subsidiaries.
RMB, the corporate and investment banking division of FirstRand, acted as financial and transaction adviser and funder to the companies.
The transaction implies a combined after-debt equity value of R8.4 billion for the companies and includes subscriptions for new shares in Frogfoot and Vox, including its wholly-owned subsidiary Hypa, by several incoming investors.
According to a statement, the new funding will accelerate Frogfoot’s fibre rollout to 360 000 connected homes a year within 12 months.
The capital injection will accelerate the expansion of high-speed fibre into previously underserved and lower-income communities, particularly townships.
The accelerated rollout is expected to create more than 5 000 direct jobs in local communities over the next 12 months, as Frogfoot increases its pace of home connections fourfold.
According to Vox, the largest shareholder grouping is the DNI Consortium, comprising DNI 4PL Contracts, JSE-listed Sabvest Capital, Masimong Group Holdings and Draper Gain International.
The second-largest shareholder grouping comprises two partnerships managed by the general partners of Metier Capital Growth Fund III. EM-Three Investment Holdings is the third-largest direct shareholder and is a private investment company founded by Simphiwe Mehlomakulu.
Abraham van der Merwe will lead the companies as group CEO of Vivica Group, with Hypa Fibre included as Vox’s wholly-owned subsidiary. He will work alongside Gert Koen, who now becomes CFO of the group.
"This capital raise is designed for societal impact at scale," says Van der Merwe.
"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."
Key fibre growth market
The additional funding comes as SA’s fibre market increasingly expands beyond established metropolitan suburbs into lower-income residential areas and townships.
Frogfoot has been building FTTH, FTTB and FTTT infrastructure for more than 25 years.
Its Frogfoot Rise offering targets township communities with prepaid fibre, while Frogfoot Air provides community WiFi and fibre connectivity.
Hypa Fibre also targets lower-income households, offering prepaid fibre services over the Vuma Reach, Openserve and Frogfoot Rise networks.
The companies' combined operations cover network infrastructure, consumer and business connectivity, and broadband services, giving the group a vertically complementary position across the fibre value chain.
Vox operates as a national internet service provider serving businesses, public sector customers and households, with offerings spanning fixed and wireless connectivity, voice, data, cloud, collaboration and cyber security.
DNI Group CEO Dr Ryan Noach says the investment reflects a shared focus on expanding affordable, high-speed connectivity.
"DNI, Frogfoot and Vox share a conviction that affordable, high-speed internet access is a social imperative. 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,” notes Noach.
The deal gives Frogfoot substantially more capital to expand its network, while Vox and Hypa provide complementary distribution and broadband capabilities.
Mehlomakulu adds: “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.”
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