Econet Wireless & Royal Bafokeng to purchase Neotel for $428M creating Africa's largest broadband network

Strive Masiyiwa, Founder & Chairman, Econet Wireless Group

Econet Wireless Global affiliate Liquid Telecom agreed to pay 6.55 billion rand ($428 million) for South African Internet-service provider Neotel Pty Ltd., creating the continent’s largest broadband network and business-to-business phone carrier. Shares of Tata Communications Ltd., which is selling the stake, surged.

The buyer is partnering with Royal Bafokeng Holdings, a South African empowerment investment group, which has committed to taking a 30 percent stake in Neotel, according to a statement from Mumbai-based Tata Communications, which acquired control of Neotel in 2009.

Read more: Econet Agrees to Pay $428 Million for Neotel With Investors – Bloomberg