Frogfoot, Vox and Hypa have secured a capital injection that will allow the companies quadruple their annual fibre rollout to 360 000 connected homes
The new growth capital will materially accelerate the physical expansion of high speed fibre to previously underserved and lower-income township communities. The capital injection will enable Frogfoot to increase its pace of home connections fourfold to 360 000 homes per annum, over the next 12 months creating over 5 000 direct jobs in local communities.
The transaction implies a combined after-debt equity value of R8,4-billion for the companies and supports the ongoing participation of leadership in both companies. The transaction includes a subscription for new shares in both Frogfoot and Vox (including its wholly owned subsidiary Hypa) by multiple incoming investors, who add both strategic and economic value to the companies.
The largest shareholder grouping is the DNI Consortium, which comprises DNI 4PL Contracts, JSE-listed Sabvest Capital, Masimong Group Holdings and Draper Gain International.
The second major shareholder grouping consists of 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.
The transaction incorporates direct management equity participation, further aligning executive leadership with long-term shareholder value. No single shareholder controls Frogfoot or Vox at present, and no shareholder will hold a controlling interest post-implementation.
“This capital raise is designed for societal impact at scale,” says Abraham van der Merwe, who will lead the companies as CEO alongside Gert Koen as chief financial officer.
“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,” says van der Merwe.