Vodacom to acquire Neotel's fixed line biz

South Africa-based Vodacom Group has decided to acquire Neotel’s fixed line business as a going concern for an undisclosed sum in a revised deal. Tata Group’s Tata Communications holds 67 per cent in Neotel.

“Tata Communications had earlier informed that Neotel’s (Tata Communications’ subsidiary in South Africa) shareholders were in discussions with Vodacom South Africa regarding a revised transaction structure and that the outcome of these discussions would directly impact the extent of the approval being sought from the Competition Tribunal and the scope of the hearing,” Tata Communications said.

“Neotel and Vodacom confirm that they have concluded a modified transaction in terms of which Vodacom will acquire the majority of Neotel’s assets related to its fixed line business as a going concern, excluding, inter-alia, Neotel’s licences (spectrum, ECN, ECNS), As part of this agreement, Neotel will offer a roaming agreement to all the mobile operators, including Vodacom,” the company said.

Vodacom had earlier decided to acquire 100 per cent in Neotel at an enterprise value of 7 billion rands in May 2014.