Open-access fibre network operator Octotel’s acquisition by a consortium has closed under accelerated timelines, says RMB, which acted as the sole mandated lead arranger to fund the acquisition.

The landmark transaction formed part of RMB’s commitment to advance investment in South Africa’s next-generation telecommunications infrastructure and the company’s comprehensive understanding of the fibre industry, combined with its strong relationships with all stakeholders involved, ensured the successful structuring of a flexible debt package.

The consortium comprised infrastructure-focused private equity fund managers African Infrastructure Investment Managers (AIIM), impact fund STOA and black-owned and -managed investment management company Thebe Investment Corporation.

“This transaction highlights RMB’s position as a leader in facilitating high-impact transactions within the African digital infrastructure landscape,” said RMB Investment Banking division’s Anushka Wohlberg, noting that the 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 highlighted a long history with the stakeholders, including as a trusted adviser to Octotel since 2018, a strong relationship with Thebe as their bankers of choice, and several years of banking with AIIM, meaning that RMB was uniquely positioned to execute this transaction and facilitate the buyout.

“We also successfully facilitated Actis’ previous acquisition, when Actis acquired the business from Pembani Remgro and other shareholders, acting as corporate finance advisers for the sellers and sole MLA for the acquisition finance package.”

The 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 Living Standards Measure, or LSM, 6 and below, as well as connecting over 145 schools with high quality fibre connections, thereby providing about 62 000 learners with the benefit of reliable connectivity for education purposes,” concluded Octotel CEO Trevor van Zyl.