[In The Know]

  Vodacom pays $675m for Gateway divisions

Author:
Staff Reporter
Issued:
11 Sep 2008

Pieter Uys, CEO designate, Vodacom Group and Julian McIntyre, president, Gateway.

VODACOM will acquire the carrier services and business network solutions subsidiaries of Gateway Telecommunications SA for around $675 million plus a make-whole payment of approximately US$25 million in relation to Gateway's high-yield bond.

Gateway is Africa's largest independent provider of interconnection services via satellite and terrestrial network infrastructure for telecommunications companies.

Pieter Uys, CEO designate of Vodacom Group, says the acquisition is in line with Vodacom's strategy to reposition itself as a leading pan-African provider of communications services and to diversify from being primarily a mobile-centric network operator. Vodacom said in a statement that the transaction remains subject to certain conditions, including approval from the South African Reserve Bank and the relevant regulatory and competition authorities.

 Å Å  Back