Telkom unloads Multi-Links
TELECOMS| April 3, 2011, 11:03 a.m.
South African telecoms giant Telkom is selling its Multi-Links business to Nigeria’
Telkom issued a statement announcing that its board had mandated management to review options for the exit of the CDMA business of Multi-Links Telecommunications Limited.
It said Telkom and Visafone Communications Limited had entered into a legally binding agreement regarding the sale of the Multi-Links’ CDMA business to Visafone for an enterprise value of USD52 million.
The transaction is conditional on inter-alia regulatory approvals. Upon the successful closing of the transaction, Telkom will retain Multi-Links’ fibre network and fixed line operations in Nigeria.
When Telkom began buying up shared of Multi-Links in 2007, it said the move was in line with its strategy of expanding into African markets with major growth potential.
By the time it had acquired all shares in Multi-Links, Telkom had spent over USD400 million on the purchase. By late last year, Multi-Links was reported to have racked up over USD600 million in losses since 2007.
Visafone was born out of the strategic acquisition of three CDMA mobile network operators. It was incorporated in Nigeria in 2007 and offers mobile, fixed and any other telecommunications service to its subscribers. It now has over three million subscribers.
Jeffrey Hedberg, former Acting Group Chief Executive Officer of Telkom said: “ We are pleased to announce the successful conclusion of realigning our business model to focus on our core competencies. Telkom management is of the opinion that the sale of the Multi-Links’ CDMA business to Visafone represents the best option available to our shareholders and Multi-Links’ customers.”
Jim Ovia, Founder and Chairman of Visafone commented: “ Visafone recognises that this deal will solidify its position in the Nigerian marketplace and is committed to offering world-class voice and data solutions to existing Multi-Links customers.”
MORE TELECOMS NEWS
Tigo Business – Building trusted business partner relationships with clientsTigo Business has increased and empowered its account management team to improve its overall customer service experience. Read More
Danbatta seeks Reps’ cooperation on telecom regulationsThe Executive Vice Chairman of the Nigerian Communications Commission (NCC), Prof. Umar Garba Danbatta, has called for more cooperation and understanding of members of the House of Representatives, on regulatory functions of the commission. Read More
Orange completes acquisition of Airtel in Burkina FasoOrange has announced that, together with its subsidiary Orange Côte d’Ivoire, it has completed the acquisition of 100% of the mobile operator Airtel in Burkina Faso. Read More
MTN Ghana goes live with 4G LTE in grand styleThe plush iconic MTN House, home to MTN Ghana’s operations came to a standstill on Tuesday, as the country’s telecom leader officially unveiled its latest 4G LTE services across the length and breadth of Ghana. Read More
NCC to end telcos’ voluntary adherence to corporate governanceAfter more than one year of voluntary adherence by telcos to the Corporate Governance Code for the industry, the Nigerian Communications Commission (NCC) yesterday started a journey that will lead to mandatory enforcement. Read More
Telkom Kenya appoints new CEOTelkom Kenya has announced the appointment of Aldo Mareuse as the Chief Executive Officer and member of the Board of Directors. Read More
N1.04tr NCC fine: MTN agrees on N330b staggered paymentMTN Nigeria and the Nigeria Communications Commission have reached an amicable settlement in the matter of the N1.04trillion fine imposed by the regulator in October last year. Read More
MTN Nigerian fine payment terms resolvedMTN has announced that the matter of its fine has been resolved with the Federal Government of Nigeria. Read More
NCC to review 2.6GHz spectrum auctionThe Executive Vice Chairman of the NCC, Prof Umar Garba Danbatta, says the Commission will soon meet with operators over the recent auction of 2.6GHz spectrum. Read More
Vodafone Ghana committed to use technology to address critical health issuesThe new Chief Executive Officer of Vodafone Ghana, Yolanda Cuba, has reiterated Vodafone Ghana’s commitment to using technology to address critical health issues such as maternal and infant mortality in the country. Read More
FEATURED STORYGovernment should encourage youths in ICT early
Youths should be given more encouragement to develop their ICT skills, an 11-year-old app developer told Kokumo Goodie.
BEST READ NEWS
IN DEPTHIBM Opens First Cloud Data Centre in South Africa
IBM is opening a new IBM Cloud Data Centre in Johannesburg, South Africa. The new cloud center is the result of a close collaboration with Gijima and Vodacom and is designed to support cloud adoption and customer demand across the continent.
COMPANY NEWSTigo Business – Building trusted business partner relationships with clients
Tigo Business has increased and empowered its account management team to improve its overall customer service experience.