South African mobile operator Vodacom may go ahead with its R7bn (US$565m) acquisition of fixed-line provider Neotel, communications regulator ICASA has ruled.
The regulator is however “not in a position to reveal what the conditions are at the…
South African mobile operator Vodacom may go ahead with its R7bn (US$565m) acquisition of fixed-line provider Neotel, communications regulator ICASA has ruled.
The regulator is however “not in a position to reveal what the conditions are at the moment”, according to an ICASA spokesperson. The deal is still subject to approval by competitition authorities.
When the deal was agreed last May, regulatory authorities were rumoured to be considering restrictions on the transfer of mobile frequencies. Neotel owns mobile spectrum in the 1.8 GHz, 800 MHz and 3.5 GHz bands, as well as access to around 15,000 km of fibre.
Welcoming the development, a spokesperson for Vodacom said the telco would “work with ICASA to finalise the conditions of the approval”.
In an interview with Bloomberg, ICASA chairman Stephen Mncube confirmed the watchdog’s approval, subject to meeting requirements on local ownership as well as broadband targets.
Vodacom, which is 65% owned by the UK’s Vodafone, agreed to buy 100% of the number two fixed-line player from India’s Tata Communications in May 2014.
The transaction values the fixed operator at 8.8x annualised operating free cash flow.
Neotel is owned by Tata Communications (68.5%), Black Economic Empowerment entity Nexus Connexion (19%), and Telecom Namibia’s CommuniTel (12.5%).
