South African mobile operator Vodacom is reportedly set to enter exclusive talks to buy local fixed-line operator Neotel for more than R5bn (US$502m).
The negotiations progressed after MTN, the second-largest wireless operator in South Africa after…
South African mobile operator Vodacom is reportedly set to enter exclusive talks to buy local fixed-line operator Neotel for more than R5bn (US$502m).
The negotiations progressed after MTN, the second-largest wireless operator in South Africa after Vodacom, pulled out of the running last month, reported Bloomberg.
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.
Tata acquired a 2.5% stake in the 12 month period before its financial year ended 31 March 2013 for Rs922.4m (US$14.9m), valuing Neotel at US$596m.
The company, founded in 2006, is attractive to South Africa’s mobile operators because of its fibre network and spectrum assets.
Vodacom and Neotel declined to comment. Tata was unable to comment on the speculation before the press deadline.
