Vodacom has confirmed that it is in talks to possibly acquire Neotel.
A SENS statement says Vodacom has “entered into exclusive discussions with the shareholders of Neotel to consider a possible acquisition of 100% of the issued share capital in and shareholder loan claims against Neotel”.
The transaction remains subject to, inter alia, finalising definitive transaction agreements and board and regulatory approvals, it adds. Shareholders will be advised of further developments.
It is believed that acquisition cost would be in the region of R5-billion, as reported yesterday.
Neotel, which won the second network operator licence in 2008, is majority owned by Tata.