Telkom will sell Multi-Links Telecommunications to an affiliate of Helios Towers Nigeria (HTN).
This follows the 13 June announcements that the CDMA division’s sale to Visafone Communications had fallen through when some conditions had not been met, and that Telkom had decided to stop funding Multi-Links.
In terms of the new agreement, which is subject to the relevant approvals, the affiliate of HTN will acquire full ownership and control of Multi-Links.
The entire issued share capital of Multi-Links will be sold for a consideration which, depending on the achievement of certain conditions, will be $10 000 300,00. Telkom will continue to provide interim operational funding to Multi-Links to enable completion of the transaction which is expected to be in August 2011.
Telkom will participate in a portion of any upside above a certain threshold in the event of a disposal Multi-Links or its assets by an affiliate of HTN on or before three years of deal completion. The participation portion is dependent on the lapse of certain time periods.