Telkom South Africa buys up Multi-Links

23 Jan 2009

Telkom South Africa has bought the remaining 25% share of Nigerian Multi-Links for USD130 million, Reuters reports. Telkom already owns 75% of the company, which it acquired in May 2007 for USD280 million, with the aim of offsetting declining domestic revenues by expanding elsewhere on the continent. Reuters claims that the Nigerian wireless market is one of the world’s fastest-growing, with a penetration rate of just 30% compared to 76% in the more developed South African market. Telkom CEO Reuben September announced, ‘Our 100% ownership of Multi-Links not only meets Telkom’s broader investment criteria but also provides us with the opportunity to expand our mobile capability.’ Nigerian company Multi-Links acquired a licence in 2006 to operate a fixed-wireless network over an expanding CDMA infrastructure in six Nigerian cities. According to TeleGeography’s GlobalComms database, its combined wireline and fixed-wireless subscriber base totalled 300,000 at the end of September 2008.