Tata sells Neotel stake for Rs 2,000 crore

Tata Communications is selling its majority stake in South African internet-service provider Neotel Pty to telecommunications firm Econet Wireless Global for $293 million (about Rs 1,992 crore). Liquid Telecom, majority owned by Econet Wireless Global, entered into an agreement to acquire Neotel. It will pay Tata Communications and minority shareholders led Nexus Connexion 6.55 billion rand ($428 million) to create the continent’s largest broadband network and business-to-business telecommunications service. Tata Communications had bought 68.5 per cent controlling stake in Neotel in 2009. Liquid Telecom is partnering with Royal Bafok-eng Holdings, a South African empowerment investment group, which has committed to take a 30 per cent equity stake in Neotel.