Vodacom Neotel deal close
Discussions between Vodacom and Neotel may be close to conclusion, according to an analyst, who says that the next step would be a trip to the Competition Commission and regulatory authorities for approval.
Vodacom and the shareholders of Neotel confirmed on 30 September 2013 that they had entered into exclusive discussions regarding a potential acquisition of 100% of the shares of Neotel by Vodacom SA.
In December 2013, Sunil Joshi, MD & CEO of Neotel said that the deal between the fixed line operator and Vodacom could be concluded within six months.
Dobek Pater, managing director at Africa Analysis told BusinessTech: “As far as I know, talks between Vodacom and Neotel are progressing and possibly nearing conclusion.”
“The next step will be to submit the proposed transaction to the Competition Commission for review and (hopefully for them) approval,” Pater said, adding that the group expected this very soon.
Vodafone and Tata
The Economic Times in India reported that Tata Group has decided to exit the telecom business completely, and has initiated talks with Vodafone to sell both Tata Communications and Tata Teleservices.
The paper cited sources with “direct knowledge” to the talks, adding that talks were at an early stage.
Vodafone would be in a position to make an offer following the $130 billion sale of its stake in U.S. company Verizon Wireless last year.
Vodafone has a 65% stake in South African operator Vodacom, while Tata Communications holds a 68.5% stake in Neotel.
“With respect to the Vodafone/Tata potential transaction, Competition Commissions and regulatory authorities would still need to approve the transaction in the individual jurisdictions,” Pater said.
“So, if Vodafone were to acquire Tata, the SA CompCom and ICASA would still look at the transaction from the local market perspective and may not necessarily approve Vodafone (through Vodacom) taking over Neotel. In such a case, Vodafone would be obliged to dispose of the Neotel assets post the transaction,” the analyst said.
Both Vodacom and Neotel declined to comment.
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