One of India's biggest telcos, Tata Communications, in association with Tata Africa Holdings, has become the majority shareholder in SNO Neotel following the purchase of the 30% stake held by Eskom and Transnet. The company's joint shareholding in Neotel now stands at 56%.
“This reaffirms Tata Communications commitment to its expansion and investment plans in the emerging regions of Asia, Africa and the Middle East," says Narasimhan Srinath, MD and CEO of Tata Communications. "We will support Neotel’s efforts to provide global quality telecom services in South Africa.”
“With the current economic climate in South Africa, it is very encouraging to us that a global telecommunications giant continues to invest in South Africa and Neotel in particular” says Ajay Pandey, MD and CEO of Neotel.”I firmly believe that such transactions reinforce international investors’ confidence in the country and more specifically in the South African telecommunications market. Neotel’s entry into the market and recent success is a clear indication of the growth potential in the industry.
“This transaction further allows Neotel to leverage on Tata Communications’ proven and vast global network of tried and tested technologies in countries such as India with similar telecoms landscape to South Africa” he says.
Pandey believes the consolidation in Neotel’s shareholding will go a long way in strengthening the company’s position as a stable player in the local market.
“It allows us to continue bringing global best practice to the South African market to position our country more effectively in the international economic context,” he says.