Tata Comm buys controlling stake in SA company

Tata Communications has acquired an additional 30 per cent stake in South African telecom entity Neotel,thereby becoming a controlling shareholder...

Written by Express News Service | Mumbai | Published:January 20, 2009 12:57 am

Tata Communications has acquired an additional 30 per cent stake in South African telecom entity Neotel,thereby becoming a controlling shareholder. The Indian telecom major has acquired the said stake from Eskom and Transnet (two South African state-owned enterprises) for an undisclosed amount. In June last year,Tata Communications had entered into an agreement with the two South African state-owned entities to acquire their 30 per cent interest in Neotel,the second telecommunications network operator in South Africa. Tata Communications,which held 26 per cent stake in the company in June,2008,had said their holding would increase to 56 per cent post the said acquisition. The stake acquisition makes Tata Communications,in association with Tata Africa Holdings,a controlling shareholder in Neotel,the South African firm said in a statement. The acquisition is part of the Indian firm’s expansion and investment plans in the emerging regions of Asia,Africa and the Middle East. “We will support Neotel’s efforts to provide global quality telecom services in South Africa,” Tata Communications MD and CEO N Srinath said.

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