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28 Jun 2011 20:37
Telecoms group Telkom said late on Tuesday that it had signed heads of agreement on Multi-Links with an affiliate of Helios Towers Nigeria.
Telkom failed to sell its CDMA business of Multi-Links Telecommunications to Visafone Communications after certain conditions precedent to the deal had not been met.
Telkom’s board also announced earlier this month that it would stop funding the Nigeria based Multi-Links.
In April Telkom outlined its proposed sale of Multi-Links Telecommunications’ CDMA business to Visafone Communications for $52-million. The settling of the Helios Towers Nigeria dispute, however, was one of the conditions precedent to the transaction.
Telkom suffered a setback after the Lagos High Court in Nigeria found in favour of Helios Towers Nigeria in the matter regarding the validity of a master lease agreement between Multi-Links and Helios.
Telkom said on Tuesday that it had reached an agreement with an affiliate of Helios Towers Nigeria on the future of Multi-Links.
“Under the terms of the heads of agreement, which is subject to the relevant approvals, the affiliate of Helios Towers Nigeria will acquire full ownership and control of Multi-Links,” it said.
The entire issued share capital of Multi-Links would be sold for a consideration of $10-million.
Telkom said it would continue to provide interim operational funding to Multi-Links to enable completion of the transaction which is expected to be in August.
“Telkom will participate in a portion of any upside above a certain threshold in the event of a disposal of Multi-Links or its assets by an affiliate of Helios Towers Nigeria on or before three years of deal completion,” it said.—I-Net Bridge
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