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Telkom SA sells iWayAfrica to Gondwana International Networks

By , Editor, ITWeb Africa
South Africa , 22 Dec 2013

Telkom SA sells iWayAfrica to Gondwana International Networks

South African telecommunications firm Telkom says it has sold its Pan African business, iWayAfrica, and Africa Online Mauritius, through a private sale to Gondwana International Networks.

iWayAfrica business operates in eight African countries and offers terrestrial wireless and VSAT services to business and residential markets.

iWayAfrica was formed as the result of the amalgamation of MWEB Africa and Africa Online in 2007 when MWEB Africa was purchased by Telkom SA.

Telkom’s group chief executive officer, Sipho Maseko, has said in a statement that Telkom has struggled to drive growth and profitability in the iWayAfrica business since it was acquired.

“Several years of poor performance of the iWay Group has resulted in continued negative EBITDA contribution to our Group,” said Maseko.

“This transaction is one of many initiatives that will contribute to our own turnaround, allowing us to focus on our core South African fixed-line and mobile operations. We are also pursuing several other initiatives in a coordinated manner to restore Telkom’s financial health,” he said.

The chief executive officer of Gondwana International Networks, Mathew Welthagen, said, “We intend to invest heavily in the business in the future.

“We see the opportunities that this offers us as essential to form a platform for our growth in the lucrative, albeit difficult ISP markets in Africa, and we are confident that we will be in a position to expand this moving forward,” said Welthagen.

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