AMP Capital has bought a majority stake in international infra tech fibre company VX Fiber, on behalf of investors in its infrastructure equity strategy.
The tech fibre business is headquartered in Sweden, with operations across South Africa and the UK and further targeted plans for the UK, Belgium, Austria and Germany.
It designs, builds and operates full-fibre FTTP (fibre-to-the-premise) open-access networks and has developed its own software platform which it operates on third parties’ passive fibre infrastructure as fibre operator.
The entire network is remotely run through a network operations centre in Umea, Sweden.
AMP Capital principal Adam Ringer called the company a “highly attractive business with huge scope for growth”.
“We have been investing in communications infrastructure for years and identifying the technologies that will deliver on infrastructure needs for the future,” Mr Ringer said.
“VX Fiber complements our existing digital infrastructure investments in North America and Europe.
“VX Fiber’s robust growth pipeline offers us the opportunity to achieve an attractive return and deploy capital incrementally as the business continues expanding its own fibre network, whilst also paving the way to further grow the company’s pan-European fibre operator strategy.”
AMP Capital has made the move as it has launched a new infrastructure debt strategy, focusing on the APAC region. The company is aiming to capitalise on emerging growth opportunities as demand for basic infrastructure in developing economies continues to rise.
The strategy will have a new dedicated team based across Singapore and Sydney, to be led by AMP Capital partner Simon La Greca.
Meanwhile VX Fiber chairman Mikael Sandberg said with the backing of AMP Capital, his company is set to become a “significant fibre owner and fibre operator in Europe”.
“Full fibre and open access are the two main trends in the telecom industry today,” Mr Sandberg said.
“VX Fiber will continue with its successful fibre operator strategy partnering with owners of passive fibre infrastructure and inviting service providers of all types and sizes to sell their services over a rapidly expanding universe of consumer and business subscribers.
“With the significant investment from AMP Capital, VX Fiber can also continue as fibre owner, deploying full-fibre access networks to complement other fibre networks.”
Swedish family office Fort Knox Förvarinig AB, which has a venture capital arm, has supported VX Fiber as a main shareholder since its inception in 2014, through its international expansion.
On Friday, AMP Capital and Infracapital, the infrastructure equity investment arm of M&G Plc, agreed to sell their combined ownership interest in European energy provider Adven.
The two investment firms had owned Adven since 2016.
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Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
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