Tata Communications to sell Neotel to Liquid Telecom

Liquid Telecom, a pan-African telecoms group, majority owned by Econet Wireless Global on has entered into an agreement to acquire Tata Communications-owned Neotel, a South African communications network operator, for ZAR6.55 billion. Liquid Telecom said that it is partnering with Royal Bafokeng Holdings (RBH), a South African empowerment investment group, which has committed to take a 30% equity stake in Neotel.


The transaction is subject to approval by South African regulatory authorities and is expected to be completed later this financial year.

“Liquid Telecom is the right partner for the next phase of Neotel’s evolution. We believe that Liquid Telecom will deliver on the vision of a well-connected Africa, which will augur well for the South African telecom industry and Neotel’s customers,” Vinod Kumar, Managing Director and CEO, said in a joint statement.

Through a single access point, businesses across Africa will be able to access Liquid Africa’s 24,000km of cross-border, metro and access fibre networks. These currently span 12 countries from South Africa to Kenya, with further expansion planned.

“We are excited about this transaction. Leveraging the strengths of RBH, Neotel and Liquid Telecom will offer an unprecedented fibre network with a unique set of services and international connectivity for telecom operators and enterprises across sub-Saharan Africa,” Nic Rudnick, Liquid Telecom CEO, said in a joint statement.

Rudnick said that Liquid will also be increasing investments into Neotel to cater for rapidly accelerating mobile and enterprise traffic, which will enable the company to launch exciting new products and services. Nexus Connection, Neotel’s minority shareholder, also welcomed the transaction.

“We welcome this transaction with Liquid Telecom. It will see the sale of Neotel to new shareholders who have the vision, expertise and funding to continue to grow the company and to allow it to reach its full potential in South Africa and across the African Continent,” Kennedy Memani said.

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6 Comments on "Tata Communications to sell Neotel to Liquid Telecom"


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June 28, 2016 11:11 am 11:11 AM

This is just the beginning, they will even sell off their 2G and CDMA spectrum in many circles to raise money to pay Docomo for the damages of dishonouring its commitment.

June 29, 2016 9:44 am 9:44 AM
I doubt it, Tata Sons was willing to pay the same amount back in 2014/15 – there is no reason that they wouldn’t pay up now. The main deal with Tata is to somehow buy out that 26.5% stake and then proceed for a merger with Telenor (probably). Unlike Videocon, who was always a niche player, Tata has been visible and present in the market too long to make a hasty exit. They’ll likely go for a merger in 2017 or 2018. Tata, unlike RCom, is more popular for its 2G service than it’s 3G (photon aside), and they’ll not… Read more »
June 28, 2016 1:47 pm 1:47 PM

Oh even I guessed that to be the reason for this sell.

June 28, 2016 1:35 pm 1:35 PM

Tata Communications is Different company. Tata tele services own Tata Docomo

June 28, 2016 2:24 pm 2:24 PM

Tata communications holds a stake in Tata teleservices and is eventually impacted by the court’s ruling.

June 28, 2016 12:08 pm 12:08 PM

kya tota docomo shut down ho jaye ga.