The Tata group’s overseas carrier Tata Communications Ltd has agreed to increase its stake in South Africa’s Neotel Ltd to a majority.
An additional 30% stake will be bought from the South African government-owned Eskom Holdings Ltd and Transnet Ltd, Mumbai-based Tata Communications said in a statement on Tuesday. It didn’t provide financial details.
Tata Communications, formerly Videsh Sanchar Nigam Ltd, already owns 26% of Neotel. Other shareholders in Neotel, which is building South Africa’s second fixed-line telephone network, includes Nexus, Communitel and Two Telecom Consortium.
Neotel was awarded a licence in December 2005 amid criticism from businesses and the government over the level of telecommunication costs in South Africa. It began selling some services to corporate customers in August 2006.