South Africa's biggest fixed line operator Telkom has taken full control of Nigerian phone network Multi-Links buy acquiring the remaining 25% stake that it did not own. Telkom paid $130m to complete its ownership.
Telkom acquired the initial 75% in May 2007 at $280m. The increase in the proportionate purchase price is attributed largely to increased subscriber base over the twelve months to September 2008.
There has also been an increase in network capacity. The subscriber base swelled from 262,000 in September 2007 to over 1.7 million a year later.
The purchase price was arrived at after an independent expert was hired to asses the value.
Multi-Links operates a fixed wireless network on the CDMA platform in Nigerian cities, with a license it acquired in 2006 to offer voice, Internet and data services.
The acquisition is in line with Telkom's plans of expanding into the African market, a move that it hopes will improve upon its stagnated revenue base.