Telkom SA Secures Final Deal to Sell Nigerian CDMA Network
Published on: 29th Jun 2011
Note -- this news article is more than a year old.
Telkom South Africa has finally secured an exit from its troubled Nigerian subsidiary and has announced the sale of Multi Links to Helios Towers Nigeria for just USD10 million.
Helios Towers had been suing Multi-Links for USD250 million over claims of broken contracts, and that legal action had scuppered a recent deal to sell the CDMA network to Visafone Communications for USD52 million.
Telkom SA brought a 75% stake in the Nigerian mobile network operator in 2007 for USD280 million, and took full ownership in 200 for USD130 million.
Telkom added that it will continue operational funding to Multi-Links to enable completion of the transaction - which reverses the recent decision to cut off funding to the subsidiary.
Telkom also has a provision to a share of the profits if and when Helio Towers sells Multi-Links within the next three years, which seems likely as consolidation within Nigeria's CDMA networks is vital to the industry as it competes with the dominant GSM networks.