Telkom sells Multi-Links for $52m

Telkom sells Multi-Links

In a statement, the operator revealed that on 31 March 2011, it sold the unit for an enterprise value of $52 million and that the proceeds for Telkom will be net of the existing liabilities of Multi-Links CDMA business.

“The transaction is conditional on inter-alia regulatory approvals. Upon the successful closing of the transaction, Telkom will retain Multi-Links’ fibre network and fixed line operations in Nigeria,” the company stated.

The company spent $410m to buy Multi-Links between 2007 and 2009 as part of its efforts to increase its presence across Africa. The operator previously took a decision to exit the CDMA business in Nigeria and focus on iWayAfrica and its corporate customers. This was after the operator wrote off R5.1 billion in assets and goodwill after the Nigerian mobile unit, underperformed.

The impairment it suffered from its struggling Multi-Links arm impacted its latest results – leading to a drop in operating revenue and plummeting returns from its voice services.

Jim Ovia, founder and chairman of Visafone, however remained hopeful that the purchase of Multi-Links would improve its position in the Nigerian market.

“Visafone recognises that this deal will solidify its position in the Nigerian marketplace and is committed to offering world-class voice and data solutions to existing Multi-Links customers,” he said.