Tata Communications submits documents for Neotel stake sale

Mumbai, Dec 11:  Tata Communications has submitted the transaction documents for selling majority stake in its subsidiary Neotel’s fixed line assets to Vodafone’s South African subsidiary Vodacom, a filing in the Bombay Stock Exchange (BSE) said here on Friday.

“With reference to the earlier communication dated December 8, 2015 whereby the company had informed that Neotel and Vodacom have concluded a modified transaction in terms of which Vodacom will acquire the majority of Neotel’s assets related to its fixed line business as a going concern, excluding, inter-alia, Neotel’s licences,” the filing by Tata Communications in the BSE said.

“As part of this agreement, Neotel will offer a roaming arrangement to all the mobile network operators, including Vodacom,” it added.

However, the company did not disclose the financial details of the deal.

The statement said transaction documentation relating to the restructured transaction was submitted to the competition tribunal.

Vodacom had reached an agreement to buy Neotel, controlled by Tata Communications, for 7 billion rand (around Rs.3,200 crore) in May last year. (IANS)