13 August 2019 Corporate & Commercial

DealMakers announced the Private Equity Deal of the Year

On 19 February 2019, at its annual gala dinner, DealMakers announced the Private Equity Deal of the Year.

Community Investment Ventures Holdings Proprietary Limited's (CIVH) acquisition of Vumatel claimed the prestigious title. Cliffe Dekker Hofmeyr played a pivotal role in the deal, acting as lead adviser to the open access fibre provider, Vumatel, on a series of potential exit processes which culminated in the ZAR multi-billion two phase sale to CIVH and merger approval for the transaction. The transaction process was extremely intricate given the regulatory complexities and the high level of interest in the premier asset in its sector (fibre to the home), resulting in an innovative structured sale.

Our team advised on the complex tactical landscape which needed to be navigated by our clients with regard to the various potential exits, and the structuring of the ultimate deal through a two-phase transaction structure, with an initial 34.9% being acquired immediately and the balance following approval from the Competition authorities (including dealing with the attendant interim period shareholder relationship). The merger raised complicated vertical and horizontal issues in a sector of key strategic importance to the South African economy.