India’s Tata group is picking up a 26% stake in InfraCo, a new South African telecommunication company, a news report said on Tuesday.
InfraCo will offer long-distance telephone services and will build and operate marine telecom infrastructure.
InfraCo will require an investment of about $350-million to launch its operations, of which the Indian business conglomerate will invest $60-million through its international calls provider Videsh Sanchar Nigam Limited (VSNL), the Economic Times reported quoting sources.
The South African government has decided to provide $225-million while the remainder will be funded through debt.
The deal is the Tata group’s second telecom venture in South Africa.
Last year, VSNL picked up a 26% stake in a secondary network operator telecom which has a licence to provide all telecom services except mobile telephony. — Sapa-dpa