Telkom signs Multi-Links agreement
Telkom today announced that it has reached an agreement with an affiliate of Helios Towers Nigeria (HTN) on the future of Multi-Links. Under the terms of the heads of agreement, which are subject to the relevant approvals, the affiliate of HTN will acquire full ownership and control of Multi-Links.
The entire issued share capital of Multi-Links will be sold for a consideration of USD10,000,300 which may increase depending on the achievement of certain conditions. Telkom will continue operational funding to Multi-Links to enable completion of the transaction.
Telkom said that it will participate in a portion of any upside above a certain threshold in the case of a disposal of Multi-Links by an affiliate of HTN on or before three years of deal completion. The participation portion is dependent on the lapse of certain time periods.
Nombulelo Moholi, Group Chief Executive Officer of Telkom, stated: “We are glad that we have been able to negotiate an agreement which will enhance the strategic focus for Telkom.”
Pinky Moholi - Telkom CEO
Lazarus Zim, Chairman of Telkom, stated: “We believe that this is a win-win transaction that will yield benefits to both sets of shareholders. In addition, we believe that embarking on this path will be beneficial to all of Multi-Links’s stakeholders particularly, employees and customers in Nigeria.”
Inder Bajaj, Chief Executive Officer of HTN, said “We are very pleased to reach an agreement with Telkom. Upon acquisition Helios Investment Partners will take forward the future course of Multi-Links to ensure the smooth and orderly transition, re-introduce operational stability and maximize value for all stakeholders including Telkom.”
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