Liq­uid Tele­com bags $300m for Neo­tel ac­qui­si­tion

Chronicle (Zimbabwe) - - Business -

ECONET Wire­less Global’s data, voice and IP provider, Liq­uid Tele­com has se­cured a $300 mil­lion (R4,4 bil­lion) syn­di­cated loan to help fund its R6,55 bil­lion ac­qui­si­tion of Neo­tel and its ex­pan­sion plans into Africa.

Liq­uid Tele­com CEO Mr Nic Rud­nick told Bloomberg that the pur­pose of the ad­di­tional fund­ing was to al­low the group to help fund the Neo­tel pur­chase (which was an­nounced ear­lier in June) as well as other deals in Botswana and Tan­za­nia.

“The pur­pose of the ad­di­tional fund­ing would be to al­low the group to ex­pand,” Mr Rud­nick told Bloomberg.

“Our strat­egy is to roll out fi­bre con­tin­u­ously and to bol­ster that with sen­si­ble ac­qui­si­tions.”

Ear­lier this year, Liq­uid an­nounced that it was plan­ning to ac­quire Neo­tel for R6,55 bil­lion. Liq­uid Tele­com is the lead­ing in­de­pen­dent data, voice and IP provider in east­ern, cen­tral and south­ern Africa. It sup­plies fi­bre op­tic, satel­lite and in­ter­na­tional car­rier ser­vices to Africa’s largest mo­bile net­work op­er­a­tors, ISPs and busi­nesses of all sizes.

It also pro­vides pay­ment so­lu­tions to fi­nan­cial in­sti­tu­tions and re­tail­ers, as well as award win­ning data stor­age and com­mu­ni­ca­tion so­lu­tions to busi­nesses across Africa and beyond. Fol­low­ing the com­ple­tion of the Neo­tel deal, Liq­uid could also con­sider list­ing the com­bined en­tity on a stock ex­change. — Wires

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