Vodacom scraps Neotel deal, Tata seeks purchaser

Tata Communications is searching for another purchaser for its South African settled line backup Neotel after an arrangement with Vodacom Group failed to work out, Chief Executive Vinod Kumar said on Wednesday. 

Tata Communications has been hoping to cut obligation, and the Neotel arrangement would have offered the Indian some assistance with companying decrease a portion of the $1.5 billion in borrowings on its books. 

On Tuesday, Vodacom, a unit of Vodafone, dropped the arranged obtaining of neighbourhood settled line administrator Neotel, referring to administrative complexities. 

"We have been in examinations with Vodacom so there is no other potential purchaser we are locked in with, in any case, individuals in the business sector have communicated hobby and now the time has sought us to investigate those alternatives," Kumar told Reuters in a meeting. 

Neotel has some $350 million of obligation of its own and is not ready to benefit the obligation independent from anyone else. Kumar said, Tata Communications would not have to help with more than $10 million for the unit's obligation overhauling.