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
MTN to empower African businesses with AWS Direct ConnectMTN Group today announced it would be the first African company to offer Amazon Web Services (AWS) Direct Connect to business customers across multiple countries on the continent. Read More
MTN leads in Cameroon with 11.2 million usersThe third-quarterly verdict delivered last week by ART, the Cameroon telecom regulator, shows that MTN had 11.2 million users in Cameroon by 30 September 2014, and is therefore the leader of the mobile market in this Central African nation of 20 million people. Read More
MTN is Ivory Coast mobile market leaderWith eight million subscribers out of a population of 22 million, South Africa’s mobile operator MTN has claimed the title of mobile market leader in Ivory Coast. Read More
TNM constructs bridge as part of promotionTelekom Networks Malawi Limited (TNM) has constructed a bridge in the country’s former Capital City of Zomba as part of a promotional activity the company launched last year. Read More
Telecoms operators donate K20.5 m towards flood victimsMalawi's Association of Telecommunications Operators (ATOL) has donated K20.5m towards the relief assistance going to communities affected by floods and hailstorm in the country Read More
Airtel Kenya drops roaming rates in UgandaAirtel customers can now browse for as low as Ksh 10 per MB while roaming in Uganda, a 78% drop in price. Read More
MTL appoints new CEOMalawi Telecommunications Limited (MTL) has appointed Harry Gombachika as its new Chief Executive Officer with effect from January 6, 2015. Read More
MTN transforms enterprise business unit in South Africa to enhance overall client experienceMTN South Africa has announced the start of a process to reorganise its MTN Business unit, to strengthen its competitive advantage in the enterprise business solutions market. Read More
Vodafone Foundation Ghana donates new incubator to hospitalVodafone Foundation Ghana on Tuesday donated a brand new incubator to the Neonatal Intensive Care Unit of the Nsawam Government Hospital at Nsawam in the Eastern Region of Ghana. Read More
M-Shwari loans help customers acquire smart devicesFollowing a month of trials, the Commercial Bank of Africa (CBA) and Safaricom have formally introduced a new proposition that will enable M-Shwari customers to access affordable loans to acquire smartphones and tablets. Read More
FEATURED STORYUCC launches 2015 ACIA awards
Uganda has launched the fifth Annual Communications and Innovation Awards, which celebrate and foster ICT innovation and achievement.
BEST READ NEWS
IN DEPTHKenya’s digital TV battle hots up
Kenya’s journey to Digital TV broadcasting took a new turn this week, when the Communication Authority of Kenya (CAK) accused three local media firms of intent to disrupt the process.
COMPANY NEWSMTN to empower African businesses with AWS Direct Connect
MTN Group today announced it would be the first African company to offer Amazon Web Services (AWS) Direct Connect to business customers across multiple countries on the ...“All Systems GO!” for the DStv Eutelsat Star Awards in Zambia
It’s “All Systems GO!” for the winners of the fourth edition of the DStv Eutelsat Star Awards to be announced at the awards ceremony in Lusaka, Zambia ...Spectra Wireless, Microsoft 4Afrika launch first commercial TV white spaces services in Africa
University students will now get fast, affordable Internet bundles and receive zero-interest financing when purchasing a new device.