WBS, iBurst sale said to have proceeded to next stage

23 Feb 2015

The rumoured takeover of South African broadband operator iBurst and its parent company Wireless Business Solutions (WBS) by technology company Multisource is reportedly proceeding to the next stage, with Multisource said to have successfully concluded a due diligence process, TechCentral reports. According to unnamed sources, the deal will now be referred to telecoms regulator the Independent Communications Authority of South Africa (ICASA) and the Competition Commission (CompCom) for approval.

As previously reported by TeleGeography’s CommsUpdate, in October 2014 David Hilewitz, director of WBS, confirmed that an unnamed bidder has made a firm offer to acquire the company. Shortly after, Multisource chairman and shareholder Phumlani Moholi disclosed that the bid was made by his company, adding: ‘We are at a sensitive stage of the transaction and bound by confidentiality. However, we are willing … to share more information once we have more clarity.’ 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, Independent Communications Authority South Africa (ICASA), Rain (Multisource/WBS)