Johannesburg – Telkom South Africa said it has entered into a legally binding agreement to sell its Multi-Links’ Code Division Multiple Access (CDMA) business to Visafone for 52 million dollars, Telkom said on Friday.
Telkom, which owns Multi-Links, a Nigerian subsidiary, said in a statement in Pretoria that the sale to Visafone would be “through a number of transaction steps”.
It said that the proceeds for Telkom would be net of the existing liabilities of Multi-Links CDMA business.
According to the statement, Telkom said the deal was entered into on March 31 and is iconditional on inter-alia regulatory approvals.
“Upon the successful closing of the transaction, Telkom will retain Multi-Links’ fibre. We are pleased to announce the successful conclusion of realigning our business model to focus on our core competencies network and fixed line operations in Nigeria,” the statement said.
“We are pleased to announce the successful conclusion of realigning our business model to focus on our core competencies”, the statement quoted Mr Jeffrey Hedberg, former Acting Group Chief Executive Officer of Telkom as saying.
“Telkom management is of the opinion that the sale of the Multi-Links’ CDMA business to Visafone represents the best option available to our shareholders and Multi-Links’ customers” , he was quoted further as saying.
According to the statement, Mr. Jim Ovia, Founder and Chairman of Visafone said that the deal will solidify Visafone’s position in the Nigerian marketplace.
He promised the company’s committment to offering world-class voice and data solutions to existing Multi-Links customers