Tuesday, 25 July 2017

Liquid Telecom buys Altech's east African assets

Liquid Telecom
Tuesday 29 January 13

Liquid Telecom today announced a deal to acquire the East African telecom assets of The Altech Group. The deal will create Africa’s largest single fibre network spanning Kenya, Uganda, Rwanda, Zambia, Zimbabwe, Botswana, DRC, Lesotho and South Africa. This network will provide reliable, high-speed, cost-effective connectivity to carriers…

Liquid Telecom today announced a deal to acquire the East African telecom assets of The Altech Group.

The deal will create Africa’s largest single fibre network spanning Kenya, Uganda, Rwanda, Zambia, Zimbabwe, Botswana, DRC, Lesotho and South Africa. This network will provide reliable, high-speed, cost-effective connectivity to carriers, ISPs, homes, financial institutions and businesses of all sizes.

Altech becomes a minority shareholder in The Liquid Telecom Group with an initial 8.6% equity stake with shareholder voting rights of 10%. Altech will also subscribe US$16.5 million in cash.

Ownership of the following Altech properties will pass to Liquid Telecom pending regulatory approval:

· its 61% stake in Kenya Data Networks, a data carrier and infrastructure provider in Kenya

· Africa Data Networks, an operator in the DRC

· Swift Global, a provider of voice, data and mobility solutions to the Consumer, Business, Enterprise and Government sectors in Kenya, Uganda and Rwanda,

· Stream, a service provider in Rwanda and

· InfoCom, an ISP in Uganda.

Liquid Telecom has built the largest fibre network in Southern Africa. Liquid’s network is the first to cross country borders and covers some of the most challenging parts of the world where no fixed network has existed before. It operates as a wholesale carrier in six countries as well as an operator in Zambia and Zimbabwe. In November last year Liquid was named Best African Wholesale Carrier at the annual awards of Capacity magazine.

Nic Rudnick, CEO of Liquid Telecom, said: “Liquid has been building and investing in a high-quality pan-African fibre network for many years and this deal will accelerate our progress by enlarging our network footprint and complementing our existing product portfolio. We are a strong and ambitious company and have a long-term investment plan for all the companies we are acquiring.

Like us, KDN has built the largest fibre network in East Africa and we believe that it is a company with huge potential. I strongly believe that its people, its network and its customer base will all add value and opportunity to our current operations.”

Altech Group CEO, Craig Venter, said: “The Liquid transaction opens a positive new chapter for Altech in partnership with a group with proven expertise in its sector.”

The deal has to be approved by regulators in the DRC, Kenya, Rwanda and Uganda. During this time, Altek and Liquid will be unable to comment further on their future plans for the companies.


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