25.6.08

Tata Communications does another deal

Tata Communications Ltd said it has entered into an agreement with the South African government-owned Eskom Holdings Ltd and Transnet Ltd.,to acquire their 30% stake in South Africa's Neotel Ltd, South Africa's first converged communications network operator. Tata Communications already owns 26% of Neotel. Other shareholders in Neotel, which is building South Africa's second fixed-line telephone network includes Nexus, Communitel and Two Telecom Consortium.After the completion of the acquisition,Tata Communications along with Tata Africa,would have an effective 56% stake in Neotel. Neotel, which is also managed by the Tatas, was launched in August 2006 and is a competitor to Africa's largest telephone group,Telkom.
Last week, Tata Communications International Pte Ltd, a wholly owned subsidiary of Tata Communications,had signed an equity joint venture agreement with the shareholders of China Enterprise Communications (CEC) Limited for the acquisition of 50% equity in CEC.

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