Tata Communications is planning to acquire another 2.5 per cent stake in South African telecom firm Neotel for $18 million. This stake is currently held by Tata Africa.
Post this acquisition, Tata Communications will own 66.6 per cent stake in Neotel.
The Indian company is also planning to invest $125 million in the South African company. This is in addition to the $395 million already approved by the Tata Communications' Board. The investments are proposed to be made from cash generated internally.
It has sought Government approval for the acquisition.