ECONET Wireless Global (EWG) has acquired 8,6% in its subsidiary Liquid Telecom held by Johannesburg Stock Exchange (JSE)-listed technology company Altron.
In a statement to the JSE, Altron, which owns Altech, said Econet had agreed to pay $55 million for the stake. The transaction was done at a valuation of Liquid Telecom, of $640 million.
A spokesman for Econet Wireless Global in South Africa confirmed the transaction, saying that Econet understood the rationale behind the sale by Altron.
“We understand that Altron is restructuring and streamlining its operations, including Altech. So, it makes sense for them to sell
a minority stake like this one, even though Liquid is doing very well,” the spokesman said.
Liquid Telecom is a specialised telecoms operator, which mainly focuses on the business market, providing services like satellite communications and fibre optic networks. It has fibre optic networks in 12 African countries and was the largest operator of V-SAT earth stations across Africa.
Econet Wireless is a privately-held group, and is not listed on any stock exchange. One of its subsidiaries, Econet Wireless Zimbabwe, is listed on the Zimbabwe Stock Exchange and its activities are confined only to the Zimbabwe market.
The group’s subsidiaries include Econet Wireless International, Econet Wireless Africa, Econet Solar International, EWG and Liquid Telecom.
Meanwhile, the spokesman clarified that Liquid Telecom was not a subsidiary of Econet Wireless Zimbabwe.
“I can confirm once again that Liquid Telecom, is not, and has never been a subsidiary of Econet Wireless Zimbabwe. Both Econet Wireless Zimbabwe and Liquid Telecom are subsidiaries of Econet Wireless Global, whose principal shareholder is Strive Masiyiwa. Econet Wireless Zimbabwe does not have business interests outside Zimbabwe,” he said.