Tata Communications of India is reportedly close to finalising the sale of its South African unit Neotel to Vodafone’s African unit Vodacom for USD502 million, TMT Finance reports. Rothschild is advising Vodacom on the sale, while Tata is guided by Rand Merchant Bank.
As previously reported by TeleGeography’s CommsUpdate, in May 2013 it emerged that Neotel was a possible acquisition target for South African mobile operators Vodacom and MTN. By early August, however, Vodacom was very much the front-runner, with the firm reported to be conducting due diligence on Neotel following the successful outcome of takeover talks. The following month, Vodacom moved one step closer to a possible takeover following the confirmation that it had entered into exclusive talks with Tata Communications.