US-based wireless broadband services provider VelaTel has acquired a 75% stake in Herlong Investments, the holding company of Croatian Novi-Net and Montenegro Connect.
The deal is expected to close in the first week of January 2012. The deal size was…
US-based wireless broadband services provider VelaTel has acquired a 75% stake in Herlong Investments, the holding company of Croatian Novi-Net and Montenegro Connect.
The deal is expected to close in the first week of January 2012. The deal size was not disclosed.
Novi-Net has a WBA licence covering 42 MHz in the 3.5 GHz bandwidth. The company has been providing services in several of Croatia’s counties since 2006.
As for Montenegro Connect, its licence covers 40 MHz of spectrum in the 3.5 GHz bandwidth.
“In exchange for its 75% equity stake, VelaTel will contribute all CAPEX and OPEX necessary to deploy and operate the Croatia and Montenegro networks until the companies are cash flow positive,” VelaTel stated in a press release.
“VelaTel’s commitment includes its ability to leverage 85% vendor financing from its strategic partner, ZTE Corporation.”
VelaTel, previously known as ChinaTel, has also been seeking to foray into the Chinese market in recent months. It recently signed an agreement with Next generation Special Network Communication Technology (NGSN) to provide 4G services in China.
Before that, at the end of 2010, the company said it would roll out 4G services in Peru and that it was looking to expand in Argentina, Chile, Guatemala and Honduras.
