Vodacom to acquire Neotel for R5 billion

Vodacom has reportedly entered into exclusive negotiations to acquire Neotel for R5 billion (US$502 million), according to Bloomberg.

According to Bloomberg, Neotel parent company, Tata Communication acquired a further 2.5% stake in the operator last year, valued at R149 million (US$14.9 million).

This makes Neotel worth R5.9 billion (US$596 million), Bloomberg said.

Neotel’s current shareholders are Tata Communications (68.5%), Nexus Connection (19%) and Communitel (12.5%).