Liquid Telecom Buys Neotel, Will Become Largest Pan-African Broadband Network
Liquid Telecom, a privately owned, pan-African telecoms group, majority owned by Econet Wireless Global, said it has agreed to acquire South African communications network operator Neotel for ZAR6.55 billion (about $428 million USD), according to a recent Forbes piece.
Liquid Telecom is partnering with Royal Bafokeng Holdings (RBH), a South African investment group, which would take a 30 percent equity stake in Neotel. Neotel is currently majority owned by India's Tata Communications (Tata Communications Limited (ADR) (OTC: TTCMY)).
The deal will create the largest pan-African broadband network and B2B telecoms provider.
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In a press release, Liquid Telecom said "businesses across Africa will be able to access Liquid Africa's 24,000km of cross-border, metro and access fibre networks. These currently span 12 countries from South Africa to Kenya, with further expansion planned."
However, the Forbes coverage cited the networks as being "40,000kms of cross-boarder, metro and access fibre networks."
"We are excited about this transaction. Leveraging the strengths of RBH, Neotel and Liquid Telecom will offer an unprecedented fibre network with a unique set of services and international connectivity for telecom operators and enterprises across sub-Saharan Africa," Nic Rudnick, Liquid Telecom CEO, said in a statement.
Subject to approval by South African regulatory authorities, the deal is expected to be completed later this financial year.
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