However, refuting local Indian press reports the negotiations could fall through.
India's Economic Times had reported the deal worth a potential 590 million US dollars could disintegrate because the South African regulator was contemplating whether or not to allow the transfer of Neotel's spectrum to [DATA VOD:Vodacom Group LTD.].
(READ MORE: Vodacom’s potential Neotel acquisition a potential telecoms game changer)
The South African unit of Britain's Vodafone has been eyeing Neotel for its data capacity.
"We're busy finalising the agreements and in the final stages of that part of negotiation," Vodacom spokesman Richard Boorman said. "That article in the Indian Economic Times is just plain wrong."
Neotel has access to more than 15,000 km of fibre-optic cable, with over half of that in major urban areas.
(READ MORE: Vodacom and Neotel in negotiations)
Vodacom shares were up 1.4 per cent at 131.15 rand at 1430 GMT.