In a move further signalling its intention to focus on its core businesses, First National Bank has concluded agreements in principle with M-Tel and Teljoy Cellular Services who will take over its Firstcall cellular subscriber base.
The two deals involve about 55 000 corporate and private subscribers. The total value and terms of the deals are subject to the signing of formal agreeements and due diligence investigations which are expected to be finalised within the next three months.
The M-Tel deal will be effective from 10 September and the Teljoy deal, from close of business on 30 September 1997.
"FNB is in the process of refocussing on its core business and took the decision to dispose of its profitable cellular division`s business in order to facilitate this process," says John Collett, general manager at FNB.
"In doing so we selected the parties we believe will be in a position to continue the high levels of service customers have come to expect from Firstcall. We have also chosen parties with the proven long-term ability to provide the capacity, expertise and financial stability to service Firstcall`s subscriber base."
In terms of both deals, Firstcall`s Vodacom subscribers will be transferred to Teljoy and the MTN subscriber base to M-Tel.
Firstcall has been the FNB Group`s cellular service arm since January 1994 and one of the few with a dual service arrangement with both networks. In this time it has built up a strong subscriber base that ranks it among the top five service providers in the South African market
Firstcall`s staff number about 150 and will either be absorbed by Teljoy and M-Tel or transferred back into the FNB Group.
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