17 June 2011
Neotel’s majority shareholder, Tata Communications, has increased its stake in the South African telecoms operator to over 60% by purchasing a 12.5% stake in the company from the Two Telecoms Consortium for an undisclosed sum.
The deal makes Neotel a subsidiary of Tata Communications – part of the US$67.4-billion Tata Group of companies – which now has a enlarged 61.5% stake in Neotel.
The increase in shareholding also highlights the strong support Neotel receives from its major shareholder, as well as Tata Communications’ commitment to the South African market.
“We welcome the investment from Tata Communications and are reaffirmed by the continued support from all our shareholders,” Neotel CEO Sunil Joshi said in a statement this week.
Reinforces relationship with Tata
The deal further reinforces Neotel’s relationship with Tata Communications, and enables Neotel to leverage Tata’s proven and vast global network, and consolidate its own position as a serious player in the local market.
Neotel, South Africa’s second landline network operator, provides a range of value-added voice and data services for businesses, wholesale network operators and providers, and consumers using its pure-IP Next Generation Network, powered by a fibre-optic backbone.
It forms part of the West Africa Cable System consortium, owns the South African landing rights for the Seacom cable system, and is working together with local mobile operators MTN and Vodacom to construct a national fibre-optic backbone.
Apart from linking South African cities to each other, Neotel directly links the country to Tata Communications’ global Tier 1 network.
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