Tiscali flogs South African ISP
Concentrating on Europe
Tiscali has agreed to flog its South African ISP as part of its strategic plan to downsize its overal operation and focus on its core European businesses.
South African ISP, MWEB, has agreed to buy Tiscali's ISP for €40m (£27m) although the all-cash deal still needs the thumbs-up from the South African competition authority.
The deal - announced on Friday - does not include the sale of Tiscali's South African cellular business, which is to be sold off seperately before the end of the year for around €5m (£3.4m).
Last week, Tiscali flogged its Austrian ISP business for €12m (£8m)in cash to Nextra Telecom GmbH.
In May, the ISP confirmed plans to sell off four of its country operations - Switzerland, South Africa, Norway and Sweden - in a bid to concentrate on its core businesses. Two weeks ago, Tiscali's board of directors gave the green light for the disposal of these "non-core assets" for a total value of around €250m (£169m).
The ISP reckons this will help reduce operating costs by 15 per cent over the next year. ®