February 10, 2017
Tata Communications completes sale of Neotel to Liquid Telecom
South Africa, Johannesburg: Today, Tata Communications and Nexus Connexion announce that they have completed the sale of their South African communications network operator, Neotel, to Liquid Telecom, a privately owned, pan–African telecoms group, majority owned by Econet Wireless Global. The purchase price is R6.55 billion. Liquid Telecom has partnered with Royal Bafokeng Holdings (RBH), a South African empowerment investment group, in this transaction.
This transaction follows the country’s Competition Commission and Independent Communications Authority of South Africa (ICASA) granting their unconditional approvals for the deal in October and December 2016, respectively. Indeed, by any measure, the deal being announced today is truly transformative. It has created the largest pan-African broadband network and B2B telecoms provider, enabling African companies to be able to connect with each other and internationally on a single fibre network.
Speaking on behalf of Tata Communications, hitherto Neotel’s majority shareholder, Vinod Kumar, managing director and CEO, said: “We are delighted that this transaction has prevailed. It clearly makes sound strategic sense for Tata Communications and our shareholders. Also, throughout the journey of this transaction, we have actively been seeking the best possible outcome for Neotel’s customers and employees. We are therefore doubly pleased to have been able to partner with Liquid Telecom in executing this deal"