Acquires Eskom and Transnet’s 30% stake
India-based telecoms company Tata Communications has increased its stake in South African fixed-line operator Neotel to 56% after acquiring Eskom and Transnet’s 30% stake. The deal makes Tata Communications the controlling shareholder in Neotel.
N Srinath, managing director and chief executive at Tata Communications, said: This reaffirms Tata Communications commitment to its expansion and investment plans in the emerging regions of Asia, Africa, and the Middle East. We will support Neotel’s efforts to provide global quality telecom services in South Africa.
Ajay Pandey, MD and CEO of Neotel, said: ”I firmly believe that such transactions reinforce international investors’ confidence in the country and more specifically in the South African telecommunications market. Neotel’s entry into the market and recent success is a clear indication of the growth potential in the industry.”
Last year the Tata group rebranded its communications business as part of a global expansion strategy, combining VSNL, VSNL International, Teleglobe, Tata Indicom Enterprise Business Unit, and Cipris brands worldwide into a single entity, Tata Communications.
Neotel is a converged communications network operator in South Africa. It provides a range of value-added voice and data services for businesses and wholesale network operators. Neotel has an agreement with South African mobile phone operator MTN to co-build a 5,000 km fiber-optic network to connect major cities across South Africa.
