Siemens Limited has increased its stake in local company Siemens Telecommunications (Sietel) to 60% by exercising an option to buy 12 600 shares held by JSE-listed Reunert.
The R121 million deal sees 9% of Sietel change hands, with Reunert turning a R4 million profit. It values Sietel at R1.34 billion.
Reunert increased its stake in Sietel to 49% in November last year when it bought an additional 21.5% from Marconi. The deal included a 180-day option for Siemens Limited to buy back 9%.
Sietel last year concluded a $221 million deal to build the Cell C cellular network and is engaged in a R400 million project to establish a fibre optic backbone network for Esi-Tel, the Eskom company which will form part of the second national operator.
At nearly the same time as acquiring the Marconi stake, Reunert also increased its stake in cellular service provider Nashua Nedtel Cellular to 95%. The company funded the acquisitions from cash reserves of R580 million.
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