Table of Contents
Key Points
- Vodacom extends acquisition deadline for 30% stake in Maziv to Feb. 14, 2025, amid ongoing regulatory challenges.
- The $790-million deal aims to strengthen Vodacom’s fiber market position in South Africa, despite regulatory hurdles.
- With repeated extensions, investors question whether Vodacom can secure approval before the new deadline.
Vodacom Group, led by South African executive Shameel Joosub, has extended the deadline for its planned acquisition of a 30 percent stake in Maziv Proprietary Ltd. to Feb. 14, 2025, marking another delay in the R14-billion ($790 million) deal aimed at strengthening its fiber market position in South Africa.
The Johannesburg-based telecom giant announced the extension in a regulatory filing last week, pushing the acquisition timeline to February 2025 due to ongoing regulatory hurdles. The deal, first disclosed on Nov. 10, 2021, has encountered multiple regulatory and transactional hurdles, leading to repeated extensions.
Regulatory roadblocks slow Vodacom’s broadband expansion
Maziv, a subsidiary of Community Investment Ventures Holdings (CIVH), brings together fiber network operators Vumatel and Dark Fibre Africa. As part of the deal, Vodacom planned to invest R6 billion ($338.93 million) in cash and contribute fiber assets worth R4.2 billion ($237.25 million). However, concerns over market dominance and pricing have complicated approval.
In October 2024, the Competition Tribunal rejected the transaction, warning it could lead to reduced competition and higher consumer costs. Despite this, Vodacom is determined to push forward, seeing the acquisition as key to expanding its broadband services and reaching underserved communities across Africa.
Investors wary as Vodacom extends deal timeline
Vodacom, which serves over 200 million subscribers across Africa, reported a modest 1.02 percent increase in revenue for the first half of its 2025 fiscal year, reaching R73.54 billion ($4.13 billion), up from R72.8 billion ($4.08 billion) during the same period last year. CEO Joosub, who holds a 0.09 percent stake in the company valued at nearly $10 million, has spearheaded the company’s efforts to enhance its digital infrastructure.
However, with yet another extension in place, investors are growing increasingly concerned about whether the deal will pass through regulatory scrutiny before the new deadline. While Vodacom remains confident about its commitment, industry experts are keeping a close eye on how regulators will respond in the coming months.
