NEW DELHI: Tata Communications has sold its majority stake in South African Internet-service provider Neotel Pty Ltd. to telecommunications firm Econet Wireless Global for $293 million (about Rs.1,992 crore).

Liquid Telecom, majority owned by Econet Wireless Global, entered into an agreement to acquire Neotel, the company said in a statement.

It will pay Tata Communications and minority shareholders led Nexus Connexion 6.55 billion rand ($428 million) to create the continent’s largest broadband network and business-to-business telecommunications service. Tata Communications had acquired 68.5 per cent controlling stake in Neotel in 2009. “Liquid Telecom is partnering with Royal Bafokeng Holdings (RBH), a South African empowerment investment group, which has committed to take a 30 per cent equity stake in Neotel,” it said. The acquisition will provide the South African businessman Strive Masiyiwa-founded company wireless spectrum and broadband access. The deal comes four months after a 7 billions rand proposal of Johannesburg-based Vodacom Group Ltd. to buy Neotel fell after almost two years of regulatory battles and legal opposition to the deal by competitors. “The shareholders of Neotel — Tata Communications of India and minority shareholders led by Nexus Connexion — have agreed for Liquid Telecom to acquire Neotel for ZAR 6.55 billion,” a statement by Liquid Telecom, Tata Communications and other stakeholders in the deal said. Tata Communications MD and CEO Vinod Kumar said: “Liquid Telecom is the right partner for the next phase of Neotel’s evolution. We believe that Liquid Telecom will deliver on the vision of a well-connected Africa.” — PTI