Today, i.e. Today, i.e. Econet Wireless Global is the majority shareholder in Liquid Telecom, a Pan-African telecommunications group. TCS is the main shareholder of Neotel, with Nexus Connection being the minor shareholder. Royal Bafokeng Holdings (RBH), a South African empowerment investment group, will join Liquid Telecom for this acquisition. RBH has pledged to take 30% of Equity in Neotel. TCS shares opened at Rs.2499.55, a jump of 3.70 point as the day began. This was an increase of 0.15%.
The transaction might require shareholders of Neotel or other regulatory bodies to affirmatively approve it. This transaction will change the course of history and create the largest Pan-African broadband network as well as B2B telecom provider. Businesses across Africa will have the opportunity to access Liquid Africa’s 2,400kms cross-border, metro and access fibre networks. They currently cover 12 countries, including South Africa and Kenya. Plans are underway for expansion.
Nic Rudnick, CEO at Liquid Telecom, commented on the transaction. He stated that they were thrilled about the transaction. He mentioned that the combination of RBH, Liquid Telecom and Neotel would create an exceptional fibre network with unique services. It will provide international connectivity for enterprises and telecom operators in sub-Saharan Africa. Nic Rudnick stated that they will increase investments in Neotel to support rapidly growing mobile and enterprise traffic, allowing them to launch new products and services.
Albertinah Kekana, CEO of RBH made a statement stating that the investment was part of their divestment strategy. This transaction was also in line with their plan to invest in the high-growth infrastructure sector. Albertinah Kekana stated that they are delighted to be a long-term investor and partner with Liquid Telecom, which has a great track record in rolling fibre out in challenging markets. He stated that the transaction was a testament to their commitment to Africa’s story and their long-term investment strategy.
Vinod Kumar (MD and CEO of TCS) also made a statement for TCS, who was the primary shareholder of Neotel. Liquid Telecom is the ideal partner for Neotel’s next phase. The key driver for growth in the Globe will be this combination of technologies and services. This transaction will encourage inclusion and help the African Continent achieve its growth goal. He is confident that Liquid Telecom can fulfill his vision of an African continent with high connectivity. Nexus Connexion welcomed the transaction.