Mumbai: Tata Communications Ltd on Tuesday said it will sell the fixed-line assets of its South African telecom subsidiary Neotel Pty Ltd to Vodacom SA, a subsidiary of Vodafone Plc, under a revised deal. The financial terms of the transaction were not disclosed.

The revised deal excludes Neotel’s wireless spectrum and licences. Instead, Neotel will offer mobile roaming services to all local mobile network operators, including Vodacom.

Tata Communications, which holds 67% in Neotel, said that Vodacom and Neotel have submitted documents seeking approval for the revised transaction to the Competition Tribunal in South Africa.

“The Competition Tribunal will consider it at a pre-hearing set down for Thursday 10th December 2015," Tata Communications said.

The deal ends more than two years of protracted negotiations.

After beginning exclusive talks with Vodacom in 2013, Tata Communications in May 2014 said Vodacom will acquire all of Neotel at an enterprise value of 7 billion rand. Vodacom had then clarified that it will not assume Neotel’s debt of about 4.815 billion rand as of end-March 2014.

On 23 November, 2015, Tata Communications said it was in talks with Vodacom for a revised transaction structure.

The Neotel acquisition will give Vodacom access to a large fibre optic network for high-speed Internet. It will also help Tata Communications pare its debt of 9,595.22 crore as on 30 September 2015.

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