The Competition Commission has approved the sale of Tiscali`s cellular mobile telephony business to mobile operator Vodacom.
The deal, worth R42 million, will see the Vodacom Group acquire the Tiscali operation through a wholly-owned subsidiary, the Vodacom Service Provider Company.
The sale forms part of plans announced last year in which Italian Internet service provider (ISP) Tiscali will divest itself of its South African divisions, as the company wishes to restructure in order to lessen its debt burden. Tiscali will focus its activities on Britain, France, Germany, Italy and the Benelux countries of Belgium, Netherlands and Luxembourg.
Market sources suggest the Tiscali operation probably has in the region of 15 000 individual customers.
In August 2004 Tiscali also reached an agreement to sell its ISP operations to M-Web for R320 million, although that deal is still awaiting Competition Commission approval.
The sale to Vodacom means a full circle for subscribers, as Vodacom originally owned the Tiscali SA predecessor, the now defunct WorldOnline.
"We welcome the approval of the Competition Commission and will continue to look after our new clients in the Vodacom fashion," says Dot Field, Vodacom`s executive head of corporate communications.
"We will ensure Tiscali`s contract customers receive all the support and help required during the transition and hope to grow the business substantially in the new year."
Related stories:
Sale of Tiscali Cellular Division signed
Vodacom buys Tiscali`s cellular business
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