Tata Comm concludes deal to sell Neotel fixed line to Vodacom

Tata Communications will sell the majority of its subsidiary Neotel’s fixed line assets toVodacom South Africa but will retain control of licences including spectrum.

• The deal was originally signed in May, 2014 wherein Vodafone’s South African subsidiary Vodacom had reached an agreement to buy Neotel, controlled by Tata Communications, for 7 billion rand (about Rs 3,200 crore).
• In dollar terms, the value of transaction at that time was around USD 676 millionwhich has come down to USD 479 million due to depreciation in value of South African rand.

Tata Communications owns over 68 per cent stake in South Africa’s largest fixed line telephone service provider Neotel.