Liquid Telecom secures US$300 million loan for expansion

ECONET Wireless unit Liquid Telecom has secured US$300 million to help fund expansion in Africa and its 6,55 billion rand (U$458 million) acquisition of South African fiber company Neotel Pty Limited.

Standard Bank Group is arranging the syndicated loan to help fund the Neotel purchase and other deals underway in Botswana and Tanzania, Liquid Chief Executive Officer Nic Rudnick said in an interview in Cape Town on Wednesday. The

company will take on Neotel’s debt as part of the deal struck with Indian seller Tata Communications Limted that’s expected to close early next year.

“The purpose of the additional funding would be to allow the group to expand,” Rudnick said. “Our strategy is to roll out fiber continuously and to bolster that with sensible acquisitions.”

The funding will help Econet pursue its strategy of expanding in internet services and pay-TV in sub-Saharan African to take advantage of cheaper and faster broadband access. The company founded and run by Zimbabwean businessman Strive Masiyiwa, also owns Zimbabwe’s biggest wireless carrier and plans to start a TV product to challenge market leader Naspers

Limited Liquid agreed to buy Neotel in June when Johannesburg-based Vodacom Group Limted abandoned its own pursuit after regulators attached stringent conditions to the deal.

Following the completion of the Neotel deal, Liquid could consider selling shares in the combined entity on a stock exchange, according to Rudnick.

“We haven’t made a final decision on this as we just completed a funding drive,” he said. – FinGaz

Share this:

Arts & Entertainment

Arts & Entertainment

Zakaria brings new album to Mutare

21st May 2017 Staff Reporter 0

SUNGURA virtuoso, Nicholas Zakaria has embarked on a promotional tour outside Harare to market his newly-released album, “Takakomborerwa” which features his understudies, Alick Macheso and Zakaria Zakaria. This will be the first time the veteran […]

Arts & Entertainment

Queen Vee ropes in Freeman

21st May 2017 Staff Reporter 0

R‘n’b/Pop singer Vanessa “Queen Vee” Sibanda seems smitten with the dancehall flare as another new single featuring local chanter Freeman is set for release soon. By Kennedy Nyavaya Titled Stress Free, the track was produced […]

Be the first to comment

Leave a Reply

Your email address will not be published.


*