Neotel CEO Sunil Joshi said that information on whether the planned deal between Vodacom and Neotel will happen should be forthcoming within weeks.<\/p>\n
On 30 September 2013 Vodacom and Neotel confirmed that they have entered into exclusive discussions regarding a potential acquisition of 100 percent of the shares of Neotel by Vodacom South Africa.<\/p>\n
At the time Vodacom CEO Shameel Joosub said that the finalisation of the transaction is subject to the successful conclusion of commercial negotiations and receiving the requisite regulatory and corporate approvals.<\/p>\n
Negotiations between the two companies are ongoing, and it is understood that Vodacom is in an advanced stage of its due diligence process.<\/p>\n
Joshi told MyBroadband that the December-January holiday impacted the negotiations, but that good progress has been made.<\/p>\n
According to information received by MyBroadband there is a currently dispute about price, but Joshi would not be drawn into discussions about this.<\/p>\n
He said that it is currently too early to comment on the likelihood of a successful deal. However, more guidance on this should emerge within the next few weeks.<\/p>\n
One of Neotel\u2019s most valuable assets, especially to Vodacom, is its spectrum. There has been a debate on whether Vodacom\u2019s acquisition of Neotel will automatically give Vodacom access to this spectrum.<\/p>\n
Joshi said that this issue will be handled when the time comes, but he is confident that South Africa\u2019s regulatory structures are mature enough to make the right decision.<\/p>\n
The Neotel CEO also said it will be premature for him to say whether he will stay at the company if Vodacom acquires Neotel.<\/p>\n
Joshi added that this decision, if a deal is struck, will be based on what the board and the company\u2019s shareholders require.<\/p>\n
In Vodacom\u2019s recent Q3 trading update, Joosub told investors that the negotiations are at an advanced stage, and in the coming weeks they would be able to finalise these negotiations.<\/p>\n
Vodacom said that it cannot comment on the content of the negotiations themselves, including price.<\/p>\n
Vodacom Neotel deal close<\/a><\/strong><\/p>\n Neotel broadband targets SMMEs<\/a><\/strong><\/p>\n