Local telecommunications firm Blue Label will, through its The Prepaid Company subsidiary, acquire mobile device distributor 3G Mobile for R1.9-billion.
The shares in 3G Mobile will be acquired in two stages, with the initial acquisition of 47.37% of the issued share capital for R900-million, followed by the acquisition of the remaining 52.63% for R1-billion.
3G Mobile operates in eight countries on the continent, with offices in South Africa, Namibia, Botswana and Mauritius, as well as distribution channels into Zambia, Zimbabwe, Swaziland and Lesotho.
The company also owns distribution rights for all major tier one and two mobile device and handset manufacturers, including, besides others, Apple, Samsung, Huawei, HiSense, ZTE and Nokia.
Through its wholly-owned subsidiary, Comm Equipment Company (CEC), 3G Mobile provides the financing for the mobile handset component of post-paid contracts to cellular network providers such as Cell C. At present, the CEC finance book is around R3-billion.
Blue Label will use the acquisition as an expansion platform into the financing and supply of mobile devices, handsets and allied products, which supplements its strategic aim to provide value-added services to both Cell C and its own customer base.