Vodacom-Neotel deal collapses

Vodacom has announced that it will no longer buy Neotel.

By - March 1, 2016 Share on LinkedIn
Neotel Vodacom

Vodacom has announced that it will no longer buy Neotel, due to regulatory complexities and certain conditions not being fulfilled.

The cancellation of the deal comes after the High Court in Pretoria ruled that Vodacom would not be able to take control of licences owned by Neotel as part of the companies’ planned R7-billion merger.

Before the ruling, the two companies had announced a modified deal that would see Vodacom acquire all Neotel’s assets – but not its licences.

“Shareholders are advised that Vodacom South Africa will continue to invest in the development of its own high-speed communication infrastructure to stimulate greater competition in the fixed telecommunications sector and support both its business services offerings and its consumer business,” said Vodacom.

Vodacom CEO disappointed

“It is disappointing that we have reached this conclusion despite all our efforts to find a way to deal with the complexities of the restructured transaction,” said Vodacom CEO Shameel Joosub.

“Our ambition to increase the roll-out of fibre-based broadband services to customers remains. We will continue to look for spectrum opportunities, as well as opportunities to accelerate our fixed-line business.”

More on Vodacom-Neotel deal

Vodacom cannot take Neotel’s licences: High Court

Vodacom drops plans to take Neotel’s spectrum

Share your thoughts

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Have you imported electronics from the US?

View Results

Loading ... Loading ...

More News

How much of your money Jacob Zuma has spent on legal fees

Jacob Zuma in Germany speaking

President Jacob Zuma has spent millions on legal fees and “exorbitant legal counsel’ in the past seven years, the DA said on Saturday.

How to build a 1,600km/h car

Bloodhound

On October 15 1997, Andy Green travelled across the Black Rock Desert, Nevada, in the Thrust SSC at 763.035 mph, or Mach 1.02. Two decades on, that record remains unchallenged – until now.

South Africa’s biggest municipalities – websites ranked

Ugly websites

We asked a local web developer to take a look at the websites of South Africa’s biggest municipalities.

Apple is moving towards a world with no PCs

Apple iPad user

Hands up if you’ve heard of Swift Playgrounds? No, it’s not some new start-up providing quick playdates for bedraggled parents.

Free MyBroadband Newsletter
×