India’s Tata Communications is planning to acquire an additional 2.5% interest in Neotel, South Africa’s second national operator (SNO), the Hindu Business Line reports. The stake, which is valued at USD18 million, is currently held by Tata offshoot Tata Africa Holdings. Previously, on 14 June 2011 Tata purchased a 12.5% stake in Neotel previously held by Two Telecoms Consortium (2TC), raising its holding in Tata to 61.5% and meaning that Neotel was henceforth a subsidiary of Tata Communications. The Hindu Business Line adds that the Indian company is also planning to invest around USD125 million in Neotel’s operations, supplementing the USD395 million invested to date.
Last month Neotel co-owner Telecom Namibia indicated that it has no plans to divest its 12.3% of shares in the South African firm, despite not having received any returns on its NAD429 million (USD50.05 million) investment thus far.