South Africa Neotel Aquires Transtel Teleocoms

South African operator Neotel has agreed to acquire Transtel Telecoms for ZAR 230 million. Transtel Telecoms is a spin-off from Transnet, South Africa's national transport company, offering national telecom services, including to customers outside the Trasnet group of companies.

Transtel employs around 500 people, generates around ZAR 400 million in annual revenues and is profitable. The acquisition gives newcomer Neotel expertise in carrier and voice and data services, as well as additional infrastructure and a national presence.

Pending regulatory approvals, the takeover is expected to close in 12-16 weeks. Transnet, which sees the divestment as part of its focus on core activities, will retain certain communications operations key to rail and harbour facilities.

The Rest @ Telecompaper