<article>Tata Group-controlled <a style="color: #000080;" href="http://www.tatacommunications.com/" target="_blank">Tata Communications Ltd</a> said on Monday it is in talks with <a style="color: #000080;" href="http://www.vodacom.com/" target="_blank">Vodacom SA</a> for a revised transaction structure to sell its South African subsidiary, <a style="color: #000080;" href="https://www.neotel.co.za/" target="_blank">Neotel</a>.</article>

Tata Group-controlled <a style="color: #000080;" href="http://www.tatacommunications.com/" target="_blank">Tata Communications Ltd</a> said on Monday it is in talks with <a style="color: #000080;" href="http://www.vodacom.com/" target="_blank">Vodacom SA</a> for a revised transaction structure to sell its South African subsidiary, <a style="color: #000080;" href="https://www.neotel.co.za/" target="_blank">Neotel</a>.
Tata Communications informed the exchanges that an agreement has been reached between the shareholders of Neotel and Vodacom SA for the latter to acquire 100% of the shares of Neotel valued at an enterprise value of 7 billion rand.
In May 2014, Vodacom had agreed to buy Neotel, the South African fixed line phone operator in which Tata Communications owns a 67% stake for 7 billion rand.
“Neotel’s shareholders are now in discussions with Vodacom South Africa regarding a revised transaction structure. The outcome of these discussions will directly impact the extent of the approval being sought from the Competition Tribunal and the scope of the hearing,” Tata Communications said in its note.
The company, however, did not disclose details that triggered for a revised transaction structure.
“Accordingly, Neotel and Vodacom have requested that the hearing be postponed. The details applicable to the postponement are to be determined at a Competition Tribunal hearing in Johannesburg today,” added Tata Communications.
In May 2014, Vodacom said it will not assume Neotel’s debt of about 4.815 billion rand as of end-March 2014.
The Neotel acquisition will give Vodacom access to a large fibre optic network for high-speed Internet. It will also help Tata Communications pare its debt of Rs.9,595.22 crore as on 30 September 2015.
Also Read: <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/temasek-backed-singapore-technologies-in-race-to-buy-tata-communications-data-centre-business-17929/" target="_blank">Temasek-backed Singapore Technologies in race to buy Tata Communications’ data centre business</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/british-telecom-major-vodafone-commits-2b-investment-in-india-to-expand-operations-19631/" target="_blank">British telecom major Vodafone commits $2b investment in India</a>
<h4>This article was first published on <a style="color: #000080;" href="http://www.livemint.com/Companies/XEJO3f5PIFXumpmZMocaQJ/Tata-Communications-in-talks-with-Vodacom-to-revise-Neotel-s.html" target="_blank">Livemint.com</a></h4>

Tata Group-controlled Tata Communications Ltd said it is in talks with Vodacom SA for a revised transaction structure to sell its South African subsidiary, Neotel.



Tata Communications in talks with Vodacom to revise sale terms of African arm Neotel

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Tata Communications in talks with Vodacom to revise sale terms of African arm Neotel

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief