Telkom Sells Nigerian CDMA Phone Network
Published on: 4th Apr 2011
Note -- this news article is more than a year old.
South Africa's dominant landline network, Telkom has sold its Nigerian CDMA network, Multi Links to another Nigerian network, Visafone. Plans for a sale of the Nigerian subsidiary were originally announced last November, and there had been rumours that Etisalat could be the buyer.
The sale price was USD52 million and will not include Multi-Links' fibre network and fixed line operations in Nigeria. The proceeds for Telkom will be net of the existing liabilities of Multi-Links CDMA business.
Commenting on the transaction, 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."
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.