South Africa’s largest mobile operator Vodacom is reportedly moving closer to a potential acquisition of Neotel by performing due diligence on the local fixed-line operator.
The due diligence follows successful deal talks between the two companies,…
South Africa’s largest mobile operator Vodacom is reportedly moving closer to a potential acquisition of Neotel by performing due diligence on the local fixed-line operator.
The due diligence follows successful deal talks between the two companies, according to news website MyBroadband citing two independent sources close to the negotiations.
By purchasing the fixed-line services provider, Vodafone-owned Vodacom would gain access to its fibre network and valuable spectrum.
In an emailed statement, Vodacom’s head of media relations Richard Boorman said that the company explores investment opportunities on a regular basis but declined to comment on any specific companies or countries.
Neotel could not be reached for comment.
In late May, Neotel posted a revenue increase of 12% year-on-year and EBITDA growth of 531% but did not disclose the actual size of its revenues and earnings.
The company’s shareholders comprise India’s Tata Communications (68.5%), Black Economic Empowerment entity Nexus Connexion (19%), and CommuniTel (12.5%).
MTN, the second-largest wireless operator in South Africa, had also been lined up as a potential bidder for the fixed-line company.
Meanwhile, both Vodacom and MTN are rumoured to be eyeing Madagascar’s smallest carrier Telecom Malagasy (Telma).
