Liquid Telecom bags $300m for Neotel acquisition
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