Local mobile networks are set to pay technology group Altron over R1bn for its Autopage subscriber base, according to a market update.<\/p>\n
In May, Johannesburg Stock Exchange (JSE) listed Altron said it is at an advanced stage of negotiations regarding the potential disposal of Altech Autopage\u2019s subscriber bases.<\/p>\n
Autopage is a phone service provider that sells the likes of MTN, Cell C and Vodacom contracts.<\/p>\n
Altron has sought to dispose of Autopage amid impacts of the ongoing mobile termination rate reductions, as well as continued industry and consumer deflationary pressures.<\/p>\n
And on Wednesday, the company detailed how much it plans to sell its subscriber base and handset book for. MTN, Vodacom and Cell C are set to be buyers of Autopage\u2019s subcriber base and parts of its handset books.<\/p>\n
In a market update, Altron highlighted the following:<\/p>\n
Altron said the disposal is subject to the conclusion of certain service level, prepaid services, handset receivable services and escrow agreements.<\/p>\n
In terms of JSE requirements, Altron also needs shareholder approval for the disposal to go ahead.<\/p>\n
The company subsequently said that shareholders will be posted within 60 days of the date of this announcement and that they will also receive a notice of general meeting.<\/p>\n
Meanwhile, the company has also highlighted how the disposal could benefit Altron.<\/p>\n
\u201cThe Autopage Disposal Consideration proceeds and cash realised as a result of the sale of the handset receivables books will be used to reduce the overall Altron group debt and restore cash to the company\u2019s balance sheet,\u201d said Altron in the market update.<\/p>\n
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