Nedbank buys into SA cellular airtime business
Nedbank Capital has concluded a private equity transaction with GloCell, for a 32,9% stake in the telecommunications business.
Nedbank Capital is the investment banking business of the Nedbank Group.
Established in 2001, GloCell is a R5 billion a year independent cellular telecommunication business which distributes prepaid airtime and connects in excess of 4 million cellular subscribers on an annual basis.
The company serves all SA network operators through its 8,000 channel partners consisting of retailers, dealers, wholesalers and through its subsidiary Jabba Mobile which distributes product through field agents.
Clive Howell, head of private equity for Nedbank Capital, said: “Our dealings with GloCell have proven that this innovative cellular business more than demonstrates these characteristics.”
“Nedbank Capital believes that GloCell is well positioned as a leading player in an industry that has real growth potential, and we anticipate that our investment in the business will serve as a catalyst for its future growth.”
“For the GloCell Group, the finalisation of this private equity deal represents an endorsement of what has already been a long-term relationship with Nedbank Capital,” said GloCell CEO, Alessandro Mariola.
“We look forward to both investing this capital injection to leverage strategic advantage and maximising Nedbank’s equity position in our business for mutual strategic and bottom-line benefits.”
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