Tata Communications said on Tuesday that its plans to sell majority stake in its Neotel to Vodacom, the South African subsidiary of Vodafone, has lapsed due to regulatory complexities in concluding the transaction.
"Vodacom, South Africa and Neotel have now confirmed that the agreement between the parties has lapsed due to regulatory complexities in concluding the transaction as well as certain conditions not being fulfilled. Accordingly, the parties have agreed that the proposed restructured transaction can no longer be progressed," the company said in a regulatory filing with the Bombay Stock Exchange.
"The company remains committed to its investment in Neotel and its commitment to focus on customers, partners and employees in South Africa and providing the highest levels of customer service," it added.
The company on December 10, 2015 had said that Neotel and Vodacom have concluded a modified transaction and the transaction documentation relating to the restructured deal was submitted to the Competition Tribunal.
Vodacom had reached an agreement to buy Neotel, controlled by Tata Communications, for 7 billion rand (around Rs.3,200 crore), in a deal that was originally signed in May 2014.
