In line with its stated intention last year of disinvesting from Multi-Links in Nigeria, Telkom has sold the CDMA business of the firm to Visafone for $52-million.
The proceeds for Telkom will be net of the existing liabilities of Multi-Links CDMA business and is conditional on regulatory approval.
Upon the successful closing of the transaction, Telkom will retain Multi-Links` fibre network and fixed line operations in Nigeria.
Commenting on the transaction, Jeffrey Hedberg, former Acting CEO of Telkom says: "We are pleased to announce the successful conclusion of realigning our business model to focus on our core competencies. Telkom management is of the opinion that the sale of the Multi-Links` CDMA business to Visafone represents the best option available to our shareholders and Multi-Links` customers."
Jim Ovia, Founder and Chairman of Visafone, adds: "Visafone recognises that this deal will solidify its position in the Nigerian marketplace and is committed to offering world-class voice and data solutions to existing Multi-Links customers."