Telkom has issued a statement on the failure to sell the CDMA business of Multi-Links Telecommunications Limited to Visafone and the Telkom Board’s decision to stop funding Multi-Links.
Telkom has now reached an agreement with an affiliate of Helios Towers Nigeria (HTN) on the future of Multi-Links. Under the terms of the heads of agreement, which are subject to the relevant approvals, the affiliate of HTN will acquire full ownership and control of Multi-Links.
The entire issued share capital of Multi-Links will be sold for a consideration of over $10-million which may increase depending on the achievement of certain conditions. Telkom will continue operational funding to Multi-Links to enable completion of the transaction.
Telkom will participate in a portion of any upside above a certain threshold in the case of a disposal of Multi-Links by an affiliate of HTN on or before three years of deal completion. The participation portion is dependent on the lapse of certain time periods.
In Boston, Nombulelo Moholi, Group Chief Executive Officer of Telkom, stated: “We are glad that we have been able to negotiate an agreement which will enhance the strategic focus for Telkom.”
Lazarus Zim, Chairman of Telkom, also added that “We believe that this is a win-win transaction that will yield benefits to both sets of shareholders. In addition, we believe that embarking on this path will be beneficial to all of Multi-Links’s stakeholders particularly, employees and customers in Nigeria.”
“We are very pleased to reach an agreement with Telkom. Upon acquisition Helios Investment Partners will take forward the future course of Multi-Links to ensure the smooth and orderly transition, re-introduce operational stability and maximize value for all stakeholders including Telkom,” said Inder Bajaj, Chief Executive Officer of HTN.
Finally, Telkom and HTN wish to acknowledge the visionary leadership and diplomacy role of Dr Charles Okeahalam, Chief Executive Officer of AGH Capital who brought both parties together to enable them to reach this agreement.