Nedbank and GloCell have successfully concluded a private equity transaction that will see Nedbank Capital Private Equity effectively acquire a 32.9% stake in GloCell, for an undisclosed sum.
Clive Howell, head of private equity for Nedbank Capital, says the entities have built up a strong relationship over the past two years. "[This], combined with GloCell's established market position and growth potential - particularly in the southern African cellular prepaid market - were the cornerstones on which the transaction was built."
Howell says GloCell is also well positioned to leverage opportunities in SA's technology convergence market. "Nedbank Capital believes GloCell is well positioned as a leading player in an industry that has real growth potential, and we anticipate our investment in the business will serve as a catalyst for its future growth."
GloCell CEO Alessandro Mariola says the Nedbank private equity deal will empower the business to deliver on its long-term business strategy and enable it to "maximise opportunities to expand the reach, value proposition and competitive advantage".
He says the company will invest the capital injection it now has from Nedbank to leverage strategic advantage.
GloCell distributes prepaid airtime and connects over four million cellular subscribers on an annual basis for all of SA's network operators. The company has 8 000 channel partners, which include retailers, dealers, wholesalers and - through its subsidiary Jabba Mobile - field agents.
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