After shareholders opted not to sell Vox Telecom, the ICT firm has hinted that it plans to go on a shopping spree as it attempts to get back onto a strong growth footing.
Following last month’s withdrawal of an exploratory process to sell the business that started in July 2014, Vox Telecom’s investors are now reinvesting in the business – a clear vote of confidence.
These shareholders, with deep enough pockets to finance Vox Telecom’s corporate activity, include Investec, Lereko Metier Capital and RMB. For the past eight months, Vox Telecom’s shareholders have been engaging with numerous potential suitors locally and internationally. However, after reviewing the company’s five-year strategy, investors decided to remove Vox Telecom from the market, citing a possible upside in its future growth.
This move was a victory for the management team of Vox Telecom, which resolved to stay the course even when the company was delisted in 2011. The team also remained resolute when Vox Telecom was recently put for sale on the market.
Vox Telecom CEO Jacques du Toit is excited about the future of the company and believes the unsuccessful exploratory process to sell the business worked in their favour. He said that the eight months spent on the exploratory process to sell the business was “not time wasted”.
“We are in the best position that we have ever been in our lives,” says Du Toit.
He says that the mooted sale of Vox Telecom gave executives enough time to analyse the business, its competitors and the whole market in a different way.
“The decision of our investors to remain on board has brought renewed energy to the team. The company now has a DNA of optimism,” said Du Toit.
Even while exploratory talks were ongoing, Vox Telecom demonstrated its ability to buy strategic companies and has