Altech Autopage, the independent cellular service provider in the Altron stable, plans to acquire 65 000 Cell C subscribers from rival Nashua Mobile for R91,5m (plus VAT).
The deal comes just weeks after Nashua Mobile’s parent, Reunert, announced it was selling the company’s Vodacom and MTN subscribers to the two mobile network operators. Reunert intends shutting down Nashua Mobile, arguing the margins it’s making are no longer satisfactory.
The Vodacom and MTN deals are worth a combined R2,3bn before VAT.
The deal with Autopage values the Cell C subscribers at about R1 400 each.
Altron says in a statement that the purchase consideration is subject to a formula-based adjustment which is dependent on various factors (including average revenue per user, churn and bad debts) associated with Nashua Mobile’s Cell C subscriber base between the date of fulfilment or waiver of the last of the conditions precedent to the transaction and the expiry of a six-month period thereafter.
The purchase consideration cannot exceed R95,7m (plus VAT). Autopage will settle 50% of the deal on the effective date and the balance after six months. The deal must be vetted by the competition authorities. — © 2014 NewsCentral Media