Frogfoot Networks, internet provider Vox, and the prepaid fiber optic service brand Hypa have attracted new equity capital and increased their debt capacity. This deal values the companies at 14.4 billion rand and is intended to increase the pace of home connections in South Africa by more than fourfold.
The goal is to achieve 360,000 annual connections within 12 months, significantly higher than the current approximately 80,000. These efforts are aimed at low-income settlements and areas and involve creating over 5,000 direct jobs. The transaction implies an equity value of 8.4 billion rand after raising about 6 billion rand in debt.
Abraham van der Merwe, who will lead the companies, stated that although it is an equity deal, it also allowed for the expansion of debt capacity within this transaction. Gert Koen will take on the role of Chief Financial Officer.
Subscriptions are made to new shares of Frogfoot and Vox, which fully owns Hypa, not Vivica Group. Van der Merwe clarified that the group was split into four separate segments around 2023: Frogfoot; Vox with Hypa; the Stage Zero renewable energy business; and Vivica itself, which retains four technology enterprises as well as the head office responsible for management, treasury, and fundraising across all four entities.
The largest incoming group is the DNI consortium, which includes DNI 4PL Contracts, JSE-listed Sabvest Capital, Masimong Group Holdings, and Draper Gain International. Additionally, two partnerships managed by general partners of Metier Capital Growth Fund III are reinvesting in the business after more than 20 years, and the investment fund Symfive Mehlokamukulu EM-Three is among the three largest direct shareholders.
Sales are conducted by RMB Ventures and Mineworkers Investment Company. MIC itself invested in DNI. Neither shareholder controlled these enterprises before or after the deal. RMB acted as consultant and financier.