Telkom Buys 75% Of Multi-links Nigeria
2007-03-23 07:32:33 | Viewed 708 times
South African fixed-line operator Telkom has bought 75% of Nigeria's Multi-links for $280-million to expand further outside its home base, the firm said on Thursday. Multi-links provides fixed, mobile, data, long-distance and international telecommunications services throughout Nigeria.
Telkom said Multi-Links was the second-largest private telephone operator in the country in terms of its subscriber base of 162 000 and boasts the biggest number of subscribers in Lagos.
"The size and nature of growth of the Nigerian telecoms market, its low tele-density of only 20% and its pent up demand for internet access demonstrates that there is immense potential for future growth, making this an ideal acquisition," Telkom chief executive Papi Molotsane said in a statement.
Cadiz African Harvest portfolio manager Rajay Ambekar said Multi-links had key technologies that Telkom could build on.
"What would be interesting to see on the mobile side was how Vodacom would get involved. There is lots of potential," he said.
"It is a great acquisition and the price they paid seems not to be over the top ... and provides Telkom with good growth opportunities," Ambekar said.
Mobile phone operator Vodacom is jointly owned by Telkom and Britain's Vodafone.
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