By Staff Writer
South Africa’s Blue Label announced on Tuesday that it is buying 3G Mobile for R1.9 billion.
The firm said it will buy 100% of 3G Mobile from its shareholders that consists of Wild Rose Capital, Newshelf 1312, Malewell Investments, Investec Bank, Jonathan Beare and DBF Capital Partners.
The transaction will be facilitated by the initial acquisition of 47.37% of the issued share capital of
3G Mobile for R900 million. The acquisition of the remaining 52.63% for R1 billion is subject to regulatory approvals and the first acquisition becoming unconditional.
3G Mobile is one of Africa’s largest distributors, and financiers, of mobile devices and handsets to major retailers and cellular network providers.
It operates in 8 African countries, with offices in South Africa, Namibia, Botswana, Mauritius and distribution channels into Zambia, Zimbabwe, Swaziland and Lesotho. It has distribution rights for all major tier one and tier two mobile device and handset manufacturers, including, inter alia, Apple, Samsung, Huawei, HiSense, ZTE and Nokia.
Through its wholly-owned subsidiary, Comm Equipment Company (CEC), it provides the financing of the mobile handset component of post-paid contracts to cellular network providers such as Cell C .
At present, the CEC finance book is a R3 billion.
3G Mobile shall be utilised as Blue Label’s expansion platform into the financing and supply of mobile devices, handsets and allied products. Both of these functions supplement Blue Label’s strategic objectives to provide value added services to both Cell C and its own customer base. 3G