Liquid Telecom, a privately-owned pan-African telecoms group majority owned by Econet Global, has entered into an agreement to acquire Neotel.

Neotel-new

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.

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