Altech sells East African operations to Liquid Telecommunications [IntelliNews - Weekly Reports]
(IntelliNews - Weekly Reports Via Acquire Media NewsEdge) Altech sells East African operations to Liquid TelecommunicationsSouth African telecommunications group Allied Technologies Limited (Altech) has signed an agreement to sell its struggling East African operations to Liquid Telecommunications Holdings in exchange for a minority stake in Liquid, Altech said in a bourse filing. Under the deal, Altech is selling several network service providers and internet service providers (ISPs), including a 60.8% stake in Kenyan data centre and fibre-optic cable firm Kenya Data Networks (KDN), a 51% stake in Altech Swift Global (ASG), a 51% stake in Infocom and a 60.8% stake in Altech Data International (ADI). The transaction includes also Altech Stream Rwanda (ASR), which is 90%-owned by KDN and the Democratic Republic of Congo's (DRC) Africa Digital Networks (ADN), which is 100%-owned by KDN. KDN has also a 10% stake in the company owning the TEAMS undersea cable operation. Liquid will acquire also certain minority stakes in these companies, so that it will own 80% in KDN, 100% in ASG, 80% in Infocom, 75% in ASR, 100% in ADI and 100% in ADN (100%). Under the deal, Altech will acquire an 8.6% stake in Liquid, as besides the sale of the East African business, Altech will pay an additional USD 16.5mn. Liquid, majority owned by Zimbabwean diversified telecommunications group Econet Wireless, operates and owns one of Africa's most extensive fibre optic networks which provides services to customers in South Africa, Botswana, Lesotho, Zimbabwe, Zambia and the DRC. Operations in a further two countries are under development. Altech believes that its East African operations, which include fibre networks, WiMax, Microwave, WiFi and satellite facilities throughout East Africa, would benefit from becoming part of a larger, specialist network and ISP operator with more extensive experience in building, maintaining and operating networks in Africa. The combination of Liquid's and Altech's East African network will create the African continent's largest single terrestrial fibre network.
(c) 2013 Emerging Markets Direct Media Holdings LLC Provided by Syndigate.info an Albawaba.com company
[ Back To Technology News's Homepage ]