Liquid Telecom has acquired South African communications network operator Neotel for ZAR 6.55bn ($138m) after the majority shareholder,Tata Communications of India and minority shareholders led by Nexus Connexion agreed to the deal.
Liquid Telecom is partnering with Royal Bafokeng Holdings (RBH), a South African investment group to take a 30% equity stake in Neotel if the transaction is approved by the relevant authorities.
Nic Rudnick, Liquid Telecom CEO, said: “We are excited about this transaction. Leveraging the strengths of Liquid Telecom, RBH and Neotel, we will offer an unprecedented fibre network with a unique set of services and international connectivity for telecom operators and enterprises across sub-Saharan Africa.”
Royal Bafokeng Holdings say the transaction is part of their diversification strategy and its focus on infrastructure. The deal gives Liquid Telecom the unprecedented power to deliver on the vision of a well-connected Africa, which will augur well for the South African telecom industry and Neotel’s customers.
Liquid Telecom was advised by The Standard Bank of South Africa Limited (lead advisor, mandated lead arranger and global coordinator) and UBS.