US-based VelaTel Global Communications has
entered into an agreement with Cyprus holding company Kerseyco Trading to
acquire 51 percent stake in Kerseyco and its Serbian operating subsidiary,
VeratNet d.o.o.
In exchange for its 51 percent equity
stake, VelaTel will contribute CAPEX and OPEX necessary to continue Verat’s
existing operations and to upgrade Verat’s existing WBA infrastructure
equipment with higher capacity equipment.
The equipment, which has been already
manufactured by ZTE, will be part of the existing strategic agreement that
VelaTel has in place with ZTE.
Based on an estimated equipment delivery
date during March 2012, VelaTel expects to complete the deployment of the new
equipment during the summer of 2012.
The transaction is expected to close in
February 2012, in order to allow sufficient time for VelaTel’s auditors to
conduct the work needed to report the financial results of Kerseyco and its
subsidiary on VelaTel’s consolidated financial statements going forward.
Verat is a telecommunications operator and
internet service provider in Serbia and offers a full range of
telecommunication services, including ADSL broadband service nationwide and
wireless broadband access (WBA) in three cities where it holds radio frequency
licenses, including Belgrade, Serbia’s capital and largest city (population
approximately 1.6 million).
Verat has more than 50 employees who serve
more than 10,000 subscribers.
Under the agreement, VelaTel has the
opportunity to expand its equity stake from 51 percent to 75 percent in
exchange for a further expansion of the WBA network to at least 50 BTS,
according to a press release
VelaTel recently acquired companies with
WBA assets in the neighboring Balkan countries of Croatia and Montenegro, and
plans to deploy all three markets simultaneously.
Recently, VelaTel and ZTE, announced their purchase order for 75 base transceiver
stations (BTS) plus the core equipment, other infrastructure and software
VelaTel will deploy in connection with the first phase of its new wireless
network projects in Croatia and Montenegro.
By Telecomlead.com Team
editor@telecomlead.com
