Tata Communications Ltd. (formerly VSNL), on 19th May, announced that Vodafone’s subsidiary Vodacom SA has agreed to acquire 100 per cent shares of Neotel, its South African unit, for 7 billion Rand or $676 million (Rs.3,958 crore).
Tata Communications holds 68.5 per cent stake in Neotel, South Africa’s second largest fixed-line telecom service provider.
The other shareholders include Nexus Connexion (19 per cent) and Communitel (12.5 per cent)
It is believed that the proceeds from the sale will be utilised to pare Tata Communication’s debt. The company has a debt of nearly Rs.12.000 crore.
