Telkom unloads Multi-Links
TELECOMSBy BiztechAfrica - 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 Cameroon drops tariffs once moreMTN Cameroon has announced its Best tariff plan, allowing subscribers to double their airtime after each refill and benefit from call bonuses towards all networks. Read More
Vodacom thrills students with cloud computingVodacom, in its “power to you” initiative, has extended its ICT field trip and tour opportunities to schools in communities where it operates. Read More
Liquid Telecom expands African satellite operationAs part of a multi-million dollar (US) investment in its satellite business, Liquid Telecom is the first operator to build a satellite hub at Teraco’s vendor-neutral earth station in South Africa. Read More
MACRA demystifies spectrum managementMalawi's regulator explains the issues around spectrum allocation. Gregory Gondwe reports. Read More
Orange Telkom Kenya donates KSh 2.19 million for drought efforts in Northern KenyaOrange Telkom Kenya has extended its support to the Laisamis Livelihood Improvement project into the second phase with a donation of KSh. 2.19 million to World Vision Kenya. Read More
NCC imposes N647m fine on telcosNigeria's NCC has imposed fines in the total sum of N647,500,000 million on three service providers, Airtel, Globacom and MTN Nigeria Ltd for failing to meet KPIs. Read More
Blu’s high speed WiFi is a hit for Accra MallThe Accra Mall is reaping the benefits of a high-speed WiFi installation by Blu Telecommunications, the 4G telecoms company. Read More
MTN: The journey must continueThe telecoms industry has spent the last 4 years on a journey towards cost-orientation, regulatory best practice and parity, and this journey must continue, says MTN. Read More
Nigerian 2.3 GHz auction winner namedBitflux Communications Limited has won Nigeria’s 2.3 GHz spectrum band licence auction, beating mobile operator Globacom. Read More
FEATURED STORYMACRA demystifies spectrum management
Malawi's regulator explains the issues around spectrum allocation. Gregory Gondwe reports.
BEST READ NEWS
IN DEPTHYouthConnekt launches Mobile Apps for Human Development Challenge in Rwanda
Rwanda’s Ministry of Youth and ICT and the UNDP, in close collaboration with Motorola Solutions, will power a Mobile App Challenge that will be implemented by YouthConnekt.