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. Also Read - Budget 2018: Here is what the tech sector and startups are expecting from Government of IndiaAlso Read - Tech spending in India to grow by 12% in 2018
On June 28, 2016, the shareholders of Neotel entered into an agreement with a Special Purpose Vehicle (SPV) which is 70 percent owned by Liquid Telecom and the remaining 30 percent by Royal Bafokeng Holdings. Also Read - Alibaba to offer cloud services to Indian enterprises with Mumbai data center
The enterprise value of the transaction is 6.55 billion ZAR which is about Rs 3,200 crore. ALSO READ: Tata Communications posts net profit of Rs 1,412 crore for Q3 2016
“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 percent compared to previous close, on BSE today.