Blue Label seals acquisition of 3G Mobile

By TINTSWALO BALOYI
JOHANNESBURG – BLUE Label Telecoms has concluded an agreement with 3G Mobile and its shareholders to acquire 100 percent of 3G’s issued share capital for R1,9 billion (US$ 146,98 million).
The shares will be acquired in two stages, with the initial acquisition by The Prepaid Company Proprietary (TPC) of 47,37 percent of the issued share capital of 3G for a purchase consideration of R900 million being subject to some conditions.
TPC is the wholly owned subsidiary of Blue Label.
The acquisition of the remaining 52,63 percent of the issued share capital for a purchase consideration of R1 billion is also subject to set conditions.
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 eight 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 Proprietary Limited (CEC), it provides the financing of the mobile handset component of post-paid contracts to cellular network providers such as Cell C Proprietary Limited.
At present, the CEC finance book is approximately R3 billion.