African wholesale carrier Liquid Telecom has agreed to acquire assets of insolvent Rwandan fixed-line operator Rwandatel to boost its growth plans on the continent.
Announcing the deal, Liquid Telecom, a subsidiary of South Africa-based Econet Wireless…
African wholesale carrier Liquid Telecom has agreed to acquire assets of insolvent Rwandan fixed-line operator Rwandatel to boost its growth plans on the continent.
Announcing the deal, Liquid Telecom, a subsidiary of South Africa-based Econet Wireless Group, said it includes Rwandatel’s copper and fibre networks and customer base, but excludes most of its land.
Liquid Telecom CEO Nic Rudnick described the deal, the financial details of which were not disclosed, as an important strategic investment in line with expansion plans.
“Rwanda is an outstanding FDI destination and we are very confident in the country’s economic future and growth prospects.”
The Rwandan government initiated insolvency proceedings against Rwandatel in April 2011 after the company failed to meet obligations under its mobile licence, which it subsequently lost. The carrier’s assets were then put up for sale and Indian telco Bharti Airtel acquired Rwandatel’s telecoms towers in 2012 for RWf9.3bn (US$15.5m).
Liquid Telecom Rwanda chairman Sam Nkusi said the company aims to “quickly rehabilitate Rwandatel’s core network and to build out the access network”.
Work on networks is expected to begin with weeks, the company said.
The deal comes four months after Liquid Telecom acquired The Altech Group’s East African assets, including a controlling interest in Kenya Data Networks (KDN).
Liquid Telecom claims to have built Africa’s largest fibre network, running from the north of Uganda to South Africa’s Cape Town. It stretches 13,000km across nine countries.
