South Africa's Second Network Operator in which Videsh Sanchar Nigam Ltd holds 26 per cent stake will acquire certain assets of Transnet for Rand 256 million (nearly Rs 4 crore).
"Transnet has accepted an offer from SNO for a major portion of certain assets created by Transtel, the telecommunications division of Transnet, for Rand 256 million. The assets include deployed-optical fibre cables, telecommunication equipment and related facilities across South Africa," sources close to the deal told Business Standard.
Through this first asset purchase, the Tatas-controlled VSNL is planning to launch national long distance and fixed wireless service operations in South Africa by SNO. These assets will help SNO roll out its enterprise and consumer services across the major cities in SA.
SNO had received Public Switched Telecommunication Service on December 9, 2005, and since then had been working on deploying a national telecommunications network based on the next-generation technologies, the sources said.
The company was in discussions with Transnet, a government-owned logistics group, and Eskom, SA-based electricity company, for procuring telecommunication assets set up by these firms.
The services will be launched through a special purpose vehicle, Strategic Equity Partner Company, in which the Tata group will hold around 51 per cent stake through VSNL and Tata South Africa Holdings SA, the investment arm of the Tata group in SA.
SepCo was rolled out by a consortium that owns SNO and had Eskom Enterprises, Transtel and Nexus Connexion as partners.
