Telecom cuts ties with Neotel
The shareholders of Neotel and Vodacom SA announced last week that they concluded an agreement on the commercial structure and terms to proceed for Vodacom to acquire 100% of the shares of Neotel.
Frans Ndoroma, Managing Director of Telecom Namibia, said: “As part of the Neotel sale to Vodacom, Telecom Namibia as a minority shareholder will relinquish its involvement in Neotel in South Africa.”
According to the press release issued, “The shareholders of Neotel and Vodacom SA have announced today that they have favourably concluded an agreement on the commercial structure and terms to proceed for Vodacom to acquire 100 per cent of the shares of Neotel valued at an enterprise value of R7 billion. This follows the announcement late last year that the parties were entering into exclusive talks for a due diligence.
The structure of the deal and its commercial terms remain subject to regulatory and competition authority approvals and the parties will be immediately commencing the necessary processes in that regard.
Dr Catherine Beukes-Amiss, current Chairperson of the Telecom Namibia Board of Directors said, “The latest development is positive as it will enable Telecom Namibia to now focus specifically on the local Namibian market.”
Meanwhile, Vinod Kumar, MD and CEO, Tata Communications said, “Tata Communications is pleased with the outcome of this deal. It is in line with our financial objectives while paving the way for Neotel to improve its value proposition in the South African market.”
Sunil Joshi, MD & CEO of Neotel then said, “We are encouraged at the progress made to date and will focus now on ensuring compliance with the regulatory approvals processes and the engagement with the competition authorities. Neotel continues to grow in the South African market and with this, when approved, will enable a greater choice of product and services for our customers and increased competition, while Neotel continues to deliver improved services and grows its customer base.”
“This transaction will impact the landscape of the Telecommunications industry in South Africa. We believe it will enhance the customer experience and benefit the South African public,”added
Kennedy Memani of Nexus Connexion.