Liquid Telecom, a privately-owned pan-African telecoms group majority owned by Econet Global, 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.
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.