 "Vodacom-Notel in exclusive discussions")
'The finalisation of the transaction is subject to the successful conclusion of commercial negotiations and receiving the requisite regulatory and corporate approvals. This transaction, if concluded, would result in the combined entity being able to offer an expanded product range and, as a consequence, enhanced customer choice,” Tata Communications said in a press release.
The stock of Tata Communications went up by around 4% on Friday after buzz about possible acquisition of Neotel, became stronger. The deal is expected to be fixed at around Rs 3,000 crore, but neither of the companies commented on the size of the deal.
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“This transaction, if concluded, would further enable Neotel to extend its footprint in South Africa and add the mobile capability that our customers require for their business’ growth,” said Sunil Joshi, CEO of Neotel.
Whiel Tata Communications is the majority shareholder in Neotel, the rest of the stake is held by Nexus Connexion and Communitel. Neotel is a South Africa based network operator providing offers value-added services, internet services for businesses and operators.
“There are a number of important steps that we still need to complete in order to conclude the transaction. If the deal is implemented, Vodacom intends to put significant investment into the combined entity to provide high-speed fixed connectivity to many more businesses and consumers,” said Shameel Joosub, CEO, Vodacom Group. Vodacom is the South African arm of British telecom major, Vodafone Plc.
Neotel has access to over 15,000 kilometers of fibre-optic cable, including 8,000 kilometers of metro fibre in Johannesburg, Cape Town and Durban. “By further building on the capabilities within Neotel, we would also aim to develop entirely new services such as fibre to the home and business,” said Joosub.