South African-based Pan-African telecommunications group Liquid Telecom put in a R6.55 billion offer Neotel.
The moved comes months after Vodacom walked away from negotiations for the same deal.
“The transaction, which is subject to regulatory approvals, is transformative and will create the largest pan-African broadband network,” Liquid Telecom said in a statement. “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.”
According to TechCentral, Liquid Telecom has enlisted the help of investment group Royal Bafokeng Holdings (RBH), who will have a 30% equity stake in Neotel. Currently the telecommunications company is owned by Tata Communications and Nexus Connexion.
Liquid Telecom CEO Nic Rudnick added that the company and its new ownership will be able to give South Africa one of the best fibre networks.
“Leveraging the strengths of Liquid Telecom, RBH and Neotel, we will offer an unprecedented fibre network with a unique set of services and international connectivity for telecom operators and enterprises across sub-Saharan Africa,” he said.
Rudnick added that it will be the first time that “African companies will be able to connect with each other in a cost-effective and reliable way, all on a single fibre network.”
“We will also be increasing investments into Neotel to cater for rapidly accelerating mobile and enterprise traffic, enabling us to launch exciting new products and services.”
Barring any holdups, the transaction is expected to be completed later this year.