Liquid Telecom, a privately-owned pan-African telecoms group majority owned by Econet Wireless Group, has entered into an agreement to acquire Neotel. The shareholders of Neotel – Tata Communications of India and minority shareholders led by Nexus Connexion – have agreed for Liquid Telecom to buy Neotel for R6.55 billion (USD430 million).
Liquid Telecom is partnering with Royal Bafokeng Holdings, a South African investment group, which has committed to take a 30% stake in Neotel. “The transaction, which is subject to regulatory approvals, is transformative and will create the largest pan-African broadband network,” said Liquid Telecom.
“Through a single access point, businesses across Africa will be able to access 40,000km of cross-border, metro, and access fibre networks.” These currently span 12 countries from South Africa to Kenya, with further expansion planned.
Earlier this year, Vodacom Group abandoned its bid to pick up Neotel for R7bn after almost two years of regulatory battles and legal opposition to the deal by competitors.
Liquid Telecom is the leading independent data, voice and IP provider in eastern, central and southern Africa. It supplies fibre optic, satellite and international carrier services to Africa’s largest mobile network operators, ISPs and businesses of all sizes. It also provides payment solutions to financial institutions and retailers, as well as award winning data storage and communication solutions to businesses across Africa and beyond.
