iBurst in takeover talks with three players

19 Sep 2014

David Hilewitz, director of Wireless Business Solutions (WBS), the parent company of WiMAX operator iBurst, has revealed that the company is currently in discussions with three different companies players regarding a possible takeover deal, and is considering one offer, BusinessTech reports. Whilst the internet service provider (ISP) has previously been linked to acquisition talks with MTN SA and Dimension Data, Hilewitz has disclosed that the current offer is not from either of these companies. Further, the executive pointed out that that no deal has been concluded, adding: ‘We are really comfortable owning WBS/iBurst.’ Hilewitz also said that the operator is also looking at building a Long Term Evolution (LTE) network using its 1800MHz spectrum, and then partnering for the use of this network.

As previously reported by TeleGeography’s CommsUpdate, in October 2011 MTN SA managing director Karel Pienaar dismissed rumours that the mobile giant was set to acquire WBS, by revealing that whilst MTN had held exploratory discussions with iBurst, a deal was ‘highly unlikely’. More recently, in August 2013 Dimension Data was said to have offered ZAR250 million (USD22.6 million) for the unit, but the bid was rejected, with WBS shareholders allegedly seeking offers in the region of ZAR500 million.

South Africa, Rain (Multisource/WBS)