South Africa: Vodacom surrenders spectrum in proposed Neotel deal

South Africa’s Vodacom will no longer buy spectrum from Neotel as part of its proposed $500 million deal to acquire the company, following talks to restructure the tie-up.

Vodacom asked the country’s Competition Tribunal to postpone a hearing into the proposed deal to acquire Neotel in late November, as the two companies revise the terms of the deal.

The company did not explain why the terms of the deal changed but its bid has faced significant opposition, particularly from rivals arguing it should not be allowed to acquire additional spectrum. Vodacom is the country’s largest operator.

In a statement, Vodacom said Neotel, presently majority owned by India’s Tata Communications, will offer a roaming agreement to all mobile operators, instead of selling its licences (including for spectrum) to Vodacom.

“Shareholders are advised that agreement has been reached on a modified transaction in terms of which Vodacom South Africa will acquire inter alia the majority of Neotel’s assets related to its fixed line business as a going concern, excluding, inter alia, Neotel’s licences,” read a statement.

Full content: CNBC

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