NEED FOR SPEED
Remgro CEO Jannie Durand was probably being really diplomatic when he spoke this week of the need for “speed in execution” by regulatory authorities. Beneath the surface the Remgro executives must be seething. Their proposed fibreoptic deal with Vodacom — to form the enlarged Maziv business — has been in limbo for 3½ years.
Remgro and Vodacom are appealing last year’s decision by the main competition bodies to prohibit the deal — which, if anyone needs reminding, was first mooted in late 2021.
The appeal date has been set for July 24, which will take the entire process to close on four years. This is time and money neither party should have to incur. More startling, though, is that the appealing parties are still awaiting the reasons from the Competition Tribunal for blocking the deal.
Remgro reckons the reasons might be published this week. But the delay is just plain bizarre, if not a little scary. Surely such reasons are readily at hand? An observer could easily reach for conspiracy theories ...
Moving on, the Remgro interim results, released this week, detail the steady progress by its debt-laden fibreoptic hub in rolling out affordable internet connections to South Africa’s poorer areas. Affordable and high-speed internet connections have a major impact on households — from bolstering access to education facilities to creating hubs for small business.
Significantly, Remgro has stashed about R7.6bn in cash on its balance sheet. That’s a big number, but probably it is what is needed to keep the fibreoptic hub expanding if the competition authorities preclude Vodacom’s participation (with its large cash injection).
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