SOUTH AFRICA, JOHANNESBURG – February 10, 2017
Today, Tata Communications and Nexus Connexion announce that they have completed the sale of their South African communications network operator, Neotel, to Liquid Telecom, a privately owned, pan–African telecoms group, majority owned by Econet Wireless Global. The purchase price is R6.55 billion. Liquid Telecom has partnered with Royal Bafokeng Holdings (RBH), a South African empowerment investment group, in this transaction.
This transaction follows the country’s Competition Commission and Independent Communications Authority of South Africa (ICASA) granting their unconditional approvals for the deal in October and December 2016, respectively. Indeed, by any measure, the deal being announced today is truly transformative. It has created the largest pan-African broadband network and B2B telecoms provider, enabling African companies to be able to connect with each other and internationally on a single fibre network.
Speaking on behalf of Tata Communications, hitherto Neotel’s majority shareholder, Vinod Kumar, Managing Director and CEO, said: “We are delighted that this transaction has prevailed. It clearly makes sound strategic sense for Tata Communications and our shareholders. Also, throughout the journey of this transaction, we have actively been seeking the best possible outcome for Neotel’s customers and employees. We are therefore doubly pleased to have been able to partner with Liquid Telecom in executing this deal”
About Tata Communications
Tata Communications Limited (CIN no: L64200MH1986PLC039266) along with its subsidiaries (Tata Communications) is a leading global provider of A New World of Communications™. With a leadership position in emerging markets, Tata Communications leverages its advanced solutions capabilities and domain expertise across its global and pan-India network to deliver managed solutions to multi-national enterprises, service providers and Indian consumers.
The Tata Communications global network includes one of the most advanced and largest submarine cable networks and a Tier-1 IP network with connectivity to over 240 countries and territories across 400 PoPs, as well as nearly 1 million square feet of data centre and collocation space worldwide.
Tata Communications’ depth and breadth of reach in emerging markets includes leadership in Indian enterprise data services and leadership in global international voice. Tata Communications Limited is listed on the Bombay Stock Exchange and the National Stock Exchange of India.
Forward-looking and cautionary statements
Certain words and statements in this release concerning Tata Communications and its prospects, and other statements, including those relating to Tata Communications’ expected financial position, business strategy, the future development of Tata Communications’ operations, and the general economy in India, are forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors, including financial, regulatory and environmental, as well as those relating to industry growth and trend projections, which may cause actual results, performance or achievements of Tata Communications, or industry results, to differ materially from those expressed or implied by such forward-looking statements. The important factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements include, among others, failure to increase the volume of traffic on Tata Communications’ network; failure to develop new products and services that meet customer demands and generate acceptable margins; failure to successfully complete commercial testing of new technology and information systems to support new products and services, including voice transmission services; failure to stabilize or reduce the rate of price compression on certain of the company’s communications services; failure to integrate strategic acquisitions and changes in government policies or regulations of India and, in particular, changes relating to the administration of Tata Communications’ industry; and, in general, the economic, business and credit conditions in India. Additional factors that could cause actual results, performance or achievements to differ materially from such forward-looking statements, many of which are not in Tata Communications’ control, include, but are not limited to, those risk factors discussed in Tata Communications Limited’s Annual Reports. The Annual Reports of Tata Communications Limited are available at www.tatacommunications.com. Tata Communications is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements.
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