Autopage to take over Nashua’s Cell C base
South Africa’s last remaining independent service provider, Autopage, planned to absorb Nashua Mobile’s Cell C subscribers, JSE-listed Allied Electronics (Altron) announced this week.
The Altron subsidiary would buy about 65 000 Cell C subscribers for an estimated R91.5-million, plus value-added tax (VAT), as JSE-listed Reunert shed its embattled Nashua Mobile unit.
Reunert announced in April that it would sell off the relevant segments of its customer base to mobile operators MTN and Vodacom for a combined R2.26-billion, excluding VAT, as Nashua Mobile was not expected to generate acceptable future returns for its parent company in a “saturated, highly-competitive” market.
Altron’s purchase consideration, which would not exceed R95.75-million, plus VAT, would be dependent on a formula-based adjustment that included average revenue per user, churn and bad debt performance from the date of the sales agreement to six months after the deal closed.
Autopage would pay out 50% of the consideration to Nashua Mobile upon conclusion of the deal, followed by the balance, six months later.
The transaction remained subject to the approval of the competition authorities and the successful migration of the Nashua Mobile customer base to each acquiring party.
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