Tata Communications today said that it has completed sale of its South Africa based telecom arm Neotel to Liquid Telecom for about Rs 3,200 crore.
"Tata Communications and Nexus Connexion announce that they have completed sale of their South African communications network operator, Neotel, to Liquid Telecom, a privately owned, pan-African telecoms group, majority owned by Econet Wireless Global," Tata Communications said in a statement.
On June 28, 2016, the shareholders of Neotel entered into an agreement with a Special Purpose Vehicle (SPV) which is 70 per cent owned by Liquid Telecom and the remaining 30 per cent by Royal Bafokeng Holdings.
The enterprise value of the transaction is 6.55 billion ZAR which is about Rs 3,200 crore.
"We are delighted that this transaction has prevailed. It clearly makes sound strategic sense for Tata Communications and our shareholders. Also, throughout the journey of this transaction, we have actively been seeking the best possible outcome for Neotel's customers and employees," Tata Communications Managing Director and CEO Vinod Kumar said.
Shares of Tata Communications closed at Rs 751.55 a unit, down 2.96 per cent compared to previous close, on BSE today.
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