Telkom South Africa Secures Final Deal to Sell Nigerian CDMA Network
Telkom South Africa has finally secured an exit from its troubled Nigerian subsidiary and has announced the sale of Multi-Links to Helios Towers Nigeria for just US$10 million.
Helios Towers had been suing Multi-links for US$250 million over claims of broken contracts, and that legal action had scuppered a recent deal to sell the CDMA network to Visafone Communications for US$52 million.
Telkom SA brought a 75% stake in the Nigerian mobile network operator in 2007 for US$280 million, and took full ownership in 200 for US$130 million.
Telkom added that it will continue operational funding to Multi-Links to enable completion of the transaction - which reverses the recent decision to cut off funding to the subsidiary.
Telkom also has a provision to a share of the profits if and when Helio Towers sells Multi-Links within the next three years, which seems likely as consolidation within Nigeria's CDMA networks is vital to the industry as it competes with the dominant GSM networks.