South Africa-based telecom operator Vodacom has officially sold part of its Gateway unit to PCCW Global, a subsidiary of Hong Kong telecommunications provider PCCW Ltd, at US$26.4 million.
Vodacom CEO Pieter Uys commented on the move saying that it did not make sense to be in the carrier business unless the company has economies of scale.
Vodacom has however clarified in a statement to shareholders saying it was selling certain investments, supplier agreements and assets of Gateway Carrier Services.
Vodacom sold the non-core carrier unit, but will hold onto the enterprise segment currently being rolled into Vodacom Business.
The deal covers Gateway Communications, Gateway Communications Belgium, Gateway Communications UK, Gateway Communications Mozambique and Gateway Communications France, as well as the supplier agreements and assets of Gateway Communications Africa (UK).
PCCW Global is present in more than 120 countries and 18000 cities, and is also a significant stakeholder in the Intra-Asia Cable System, the region’s first direct, point-to-point express optical fibre submarine cable interconnecting Hong Kong, Tokyo and Singapore.
Vodacom bought Gateway’s carrier services and business network solutions divisions in 2008, for US$700 million.
A year ago, Gateway was worth US$72 million, after Vodacom wrote it down substantially.
Gateway provides communications services to multinational companies and telecommunications network operators in 40 African countries.
