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Telkom rival to invest R1.5bn

Nov 23 2005 07:37

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New Delhi - Indian conglomerate Tata Group will invest more than US$230m (R1.5bn) in South Africa over the next three years to develop and operate telecommunication services, a news report said on Wednesday.

Tata's telecommunications unit, Videsh Sanchar Nigam Ltd, plans to invest in the country's long distance and wireless service, the Business Standard newspaper quoted company officials as saying.

The company says the services would be operated through South Africa's Second Network Operator, beginning with Johannesburg.

Meanwhile, FIN24 sister publication Sake reports Tata Group also has its eyes on the steel assets of Highveld Steel & Vanadium - an investment that will cost it close to R7.2bn.

The group's chairperson, Ratan Tata, said in Mumbai on Tuesday that Tata is already in talks with Anglo American for a 79% stake in Highveld.

The Tata Group already has set up a manufacturing base in South Africa for buses and was planning an assembling unit for its small cars as well.

With Highveld, Tata will be less dependent on the volatile steel prices of the SA market.

Tata is not interested in Highveld's vanadium interests.

The Tata Group comprises 93 operating companies in seven business sectors, information systems and communications, engineering, materials, services, energy, consumer products and chemicals.

It is one of India's largest business conglomerates with revenues in 2004-2005 totaling $17.8bn. - Sake/AP

 
 
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