Indian telecoms group Tata Communications has started looking for a new buyer for its South African fixed-line operator Neotel after a deal with Vodacom collapsed, CEO Vinod Kumar was quoted saying.
Indian telecoms group Tata Communications (NSE:TATACOMM) has started looking for a new buyer for its South African fixed-line operator Neotel after a deal with Vodacom (JSE:VOD) collapsed, CEO Vinod Kumar was quoted saying.
Earlier this week, South Africa’s Vodacom, which is majority-owned by British giant Vodafone, cancelled plans to buy the majority of Neotel’s assets, citing “regulatory complexities and certain conditions not being fulfilled”.
A few months before that, Vodacom had reached a modified agreement with the local fixed-line provider aimed at securing Competition Tribunal approval for their M&A transaction first announced in May 2014. But on Tuesday, the mobile carrier said it had agreed with Neotel that the proposed restructured transaction can no longer be carried out.
Kumar told Reuters that although Tata Communications is not currently engaged with another buyer for Neotel, “people in the market have expressed interest”.
The Indian company is reportedly also looking to sell a stake in its data centre subsidiary.
