iBurst receives buyout offer from unnamed company

14 Oct 2014

David Hilewitz, director of Wireless Business Solutions (WBS), the parent company of South African wireless broadband operator iBurst, has confirmed that an unnamed bidder has made a firm offer to acquire the company, TechCentral reports. Whilst the executive pointed out that he is ‘bound by a confidentiality agreement’ not to reveal the identity of the firm, he implied that the acquiring party is South Africa-based, but not one of the country’s large telecoms operators. Further, Mr Hilewitz said that WBS is in the process of performing a final due diligence and that a number of conditions have to be met before the deal is finalised.

As previously reported by TeleGeography’s CommsUpdate in September 2014, WBS had been in discussions with three different companies regarding a possible takeover deal, and was considering one offer. The internet service provider (ISP) had previously been linked to acquisition talks with MTN South Africa and Dimension Data; in August 2013 Dimension Data was said to have offered ZAR250 million (USD22.6 million) for the unit, but the bid was rejected.

South Africa, Rain (Multisource/WBS)