South Africa’s largest mobile player Vodacom has entered exclusive discussions with the owners of Neotel to acquire the local fixed-line operator.
Vodacom said the deal would include 100% of the issued share capital in and shareholder loan claims…
South Africa’s largest mobile player Vodacom has entered exclusive discussions with the owners of Neotel to acquire the local fixed-line operator.
Vodacom said the deal would include 100% of the issued share capital in and shareholder loan claims against Neotel. The takeover remains subject to definitive transaction agreements and board and regulatory approvals.
Neotel is majority-owned by India’s Tata Communications, which has built up a holding of around 68.5% after assuming control with a 56% stake in 2008.
Earlier this year, Tata acquired a 2.5% stake for Rs922.4m (US$14.9m), valuing Neotel at US$596m.
The remaining shares are held by Black Economic Empowerment entity Nexus Connexion (19%), and CommuniTel (12.5%).
Vodacom, founded in 2006, is attractive to South Africa’s mobile operators because of its fibre network and spectrum assets.
MTN, the second-largest wireless operator in South Africa after Vodacom, had also been rumoured to be interested in Neotel.
