Liquid Telecom buys Neotel for ZAR 6.55 bln

News General South Africa 28 JUN 2016
Liquid Telecom buys Neotel for ZAR 6.55 bln

Tata Communications and minority shareholders led by Nexus Connexion have agreed to sell South African operator Neotel to Liquid Telecom for ZAR 6.55 billion. Liquid Telecom is partnering with Royal Bafokeng Holdings (RBH), a South African empowerment investment group, which has committed to take a 30 percent equity stake in Neotel.

The transaction is subject to a number of approvals, including corporate approvals that may be required by the shareholders of Neotel. It will create the largest pan-African broadband network and B2B telecoms provider. Through a single access point, businesses across Africa will be able to access Liquid Africa's 24,000km of cross-border, metro and access fibre networks. These currently span 12 countries from South Africa to Kenya, with further expansion planned.

Leveraging the strengths of RBH, Neotel and Liquid Telecom will offer a fibre network with a unique set of services and international connectivity for telecom operators and enterprises across sub-Saharan Africa. The transaction is subject to approval by South African regulatory authorities and is expected to be completed later this financial year. South African authorities previously upheld the sale of Neotel to Vodacom due to competition concerns. 

Categories:

General

Companies:

Tata Communications,  NeoTel,  Liquid Telecom

Countries:

South Africa

Tags:

Corporate strategy, M&A buyouts & divestments

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