Mergers And Acquisitions

South Africa: The Merger Of Sentech And Broadband Infraco Solidifies!

In South Africa, the possible merger of the two state-owned-enterprise (SOE) communications infrastructure companies, Sentech and Broadband Infraco, which has been spoken about for a while now seem to be crystalising into reality Going by a statement attributed to the country's Minister of Communications and Digital Technologies, Ms Stella Ndabeni-Abrahams, the business case for merging the two organisations is now in its final stages.
In South Africa, Sentech is the broadcast signal distributor that provides transmission services to the SABC, other commercial radio and TV stations as well as community radio stations. Broadband Infraco (BBI) provides wholesale backhaul connectivity and carrier services to the telecommunications sector.
Reporting on the continued rationale for the merger, Stella Ndabeni-Abrahams commented that the merger of Sentech and Broadband Infraco "would result in the establishment of a state-owned digital infrastructure company bringing together broadband, satellite, cloud and other technologies that speak to infrastructure".
The Minister reiterated that the proposed merger would be a focus of her department's strategic plans and priorities, especially as the South African presidency has mandated a streamlining of government departments and entities.
The proposed Sentech and Broadband Infraco merger is said to now be awaiting Parliamentary considerations and action to make it a reality.

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