Cell C has finally sold its stake in Virgin Mobile SA. UK-based Virgin Group will increase its stake by 5%, from 50% to 55%, with the remaining 45% of Cell C’s 50% stake in the company being sold to Calico Investments of the Bahamas.
According to the companies, Calico plans to invest additional growth capital into Virgin Mobile, allowing it to offer a wider range of improved products and services. The value of the transaction has not been disclosed.
Calico is an investment company controlled by private investors and focused on developing opportunities in emerging markets, especially in Africa. Virgin Mobile is one of its first investments in the region.
Cell C had been widely rumoured to be planning to sell its stake in Virgin Mobile to SA cellphone distributor Allied Mobile. It’s understood that Calico has a minority stake in Allied.
The Virgin Mobile transaction is still subject to certain conditions including Competition Commission and exchange control approvals. Barring hiccups, it expects to receive these approvals in April.
Cell C will continue as Virgin Mobile’s network partner in terms of an updated and expanded network services agreement. Virgin Mobile will have access to Cell C’s new third-generation mobile network.
Virgin Mobile SA CEO Steve Bailey says the company will soon launch new products on the back of Cell C’s network. He describes the lauch of these products as “imminent”.
Virgin Mobile has about 325 000 customers and in 2010 generated revenues of more than R1bn, Bailey says. — Staff reporter, TechCentral
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