CIVH, backed by Johann Rupert’s Remgro, valued at $667 million

Key Points

• CIVH’s new valuation stands at $667 million, far below Remgro’s $1.4 billion figure, prompting scrutiny over its telecom asset’s market value.
• Vodacom’s $322.57 million bid for 30% of Maziv faces delays after regulatory pushback; a court decision is expected by July 2025.
• Remgro’s 2024 headline earnings surged 39% to $200.53 million, despite impairments in Mediclinic and Heineken Beverages holdings.

An independent valuation has pegged Community Investment Ventures Holdings (CIVH)—the telecommunications arm of Johann Rupert’s Remgro Limited—at R12.4 billion ($667 million), a far cry from the R26 billion ($1.4 billion) figure Remgro attributes to the business in its latest financials.

CIVH holds a strategic place in Remgro’s portfolio. It owns Maziv, the parent company of fibre network leaders Vumatel and DFA, which together manage more than 57,000km of fiber across South Africa. Remgro has repeatedly emphasized CIVH’s importance in meeting the country’s growing demand for fast, reliable internet—a sector it believes still has plenty of room to grow.

But the new valuation has stirred debate. Just months ago, at Remgro’s Capital Markets Day, the group presented a much higher enterprise value for Maziv—R51.9 billion ($2.8 billion), based on a 10.1x EV/EBITDA multiple. That figure put CIVH ahead of even larger telecom players like Telkom in perceived worth, raising eyebrows within the industry.

Vodacom’s bid for Maziv hits a wall

The timing of this reassessment is notable, given Vodacom’s ongoing efforts to acquire a 30 percent stake in Maziv. The proposed deal, first announced in Nov. 2021, involved a mix of cash and fiber assets. However, South Africa’s Competition Commission recommended blocking the transaction in August 2023, and the Competition Tribunal upheld that view in October 2024.

Remgro and Vodacom have since taken the matter to the Competition Appeal Court, which is expected to hear the case in July 2025. In the meantime, Remgro CEO Jannie Durand says the long delays have forced a rethink. “The previous valuation model is now irrelevant,” he said, hinting that the structure and price of the deal may need to be revised.

Should the deal eventually move forward, Vodacom is expected to contribute R6 billion ($322.57 million) in cash, as well as its fibre-to-the-home and fibre-to-the-business networks. But with the valuation of Maziv now in question, it’s possible Vodacom will have to adjust its offer to maintain a 30 percent stake.

Remgro earnings climb despite headwinds

Founded in the 1940s by the late Anton Rupert, Remgro has evolved into one of South Africa’s most influential investment groups. Johann Rupert, who chairs the company, retains tight control with a 42.91 percent voting stake.

For the fiscal year 2024, Remgro reported a 3.86 percent rise in revenue to R26.39 billion ($1.42 billion). Headline earnings surged nearly 39 percent to R3.73 billion ($200.53 million), up from R2.68 billion ($144.53 million) the previous year. The gains were largely driven by improved performance across its investment portfolio, despite impairments linked to its holdings in Mediclinic and Heineken Beverages.