Tata, which is listed on the New York Stock Exchange, yesterday told shareholders - through the US Securities and Exchange Commission - its stake has gone from 49% to 61.5%.
The company did not disclose from which other Neotel shareholder it bought its stake. According to the Neotel Web site, its owners include Tata; CommuniTel, with a 12.5% holding; and Nexus Connexion, with an undisclosed holding.
Neotel has so far failed to turn over a profit after four years of existence. It turned over around R2 billion in the last financial year, but made a R1.1 billion loss. In April, it said it wanted to be profitable at cash basis by next March.
Tata Communications is a subsidiary of the $17.8 billion Tata Group. It has been in existence for more than 135 years and provides international telecoms and value-added services.
It was originally a government department known as the Overseas Communication Service and was incorporated as Tata Communications in March 1986. In Africa, the company has operations in SA, Zambia, Malawi, Tanzania, Uganda, Ghana, Mozambique, Zimbabwe, Nigeria and Kenya.
Tata Group companies operate in the motor, IT and telecoms, steel and hospitality sectors on the continent.
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