Tata Communications has increased its stake in South Africa's converged communications network operator, Neotel, which is also a Tata group subsidiary. Tata Communications has acquired Eksom and Transnet's 30% stakes in Neotel , increasing its stake in Neotel to over 50%. Tata communications along with Tata Africa holdings has now become a controlling stake holder in the South African communication provider, owning 56% stake in Neotel, which is South Africa's first converged communications network operator.
The transaction would allow Neotel to leverage on Tata Communication's vast global network of technologies in countries such as India, besides strengthening its position as a stable player in the local market.
Neotel, which enterd the South African markets few years ago, provides voice and data services for businesses and wholesale networks. Tata Communications has announced its plans to acquire the additional 30% stake in Neotel in June 2008.
Neotel had recently entered into an agreement with telecom operator MTN to build a 5,000-km fibre-optic network across South Africa.
