Tata Communications said the transaction for selling majority stake in subsidiary Neotel to Vodacom, South Africa has lapsed due to regulatory complexities and non-fulfillment of certain conditions.
The company on December 10 last year had said that Neotel and Vodafone's South Africa subsidiary, Vodacom have concluded a modified transaction and the transaction documentation relating to the restructured deal was submitted to the Competition Tribunal.
"Vodacom, South Africa and Neotel have now confirmed that the agreement between the parties has lapsed due to regulatory complexities in concluding the transaction as well as certain conditions not being fulfilled," the company said in a filing to BSE.
It added that accordingly, the parties have agreed that the proposed restructured transaction can no longer be progressed.
The deal was originally signed in May 2014 wherein Vodacom had reached an agreement to buy Neotel, controlled by Tata Communications, for 7 billion rand (about Rs 3,200 crore).
In dollar terms, the value of transaction at that time was around USD 676 million.
Tata Communications owns over 68 percent stake in South Africa's largest fixed line telephone service provider Neotel.
Tata Communications said it remains committed to its investment in Neotel and commitment to focus on customers, partners and employees in South Africa and providing the highest levels of customer service.
Source : http://www.moneycontrol.com/news/business/companies/tata-communications-deal-to-sell-neotel-to-vodacom-lapses-1032612.html