Remember the deal from january last year that set Liquid Telecom as Africa’s largest terrestrial fibre network operator? As part of the deal, Altech, whose East African infrastructure assets Liquid acquired then, had received an 8.6% stake which they dispose of eventually when the option to do so came.
Altech has announced last week that they are offloading the Liquid Telecom stake to Econet Wireless, Liquid’s parent company. Econet is buying the shares for US $55 million.
The reason for exercising the option, according to the Altech’s announcement, is that they don’t consider the 8.6% in Liquid a core to their operation going forward. The cash will also be used to service some debts whose detail the company didn’t go into.
Altech is a subsidiary Allied Electronics (Altron) which also owns Bytes and Powertech. The disposal is subject to the approval of the Altron board.