Cell C sells Virgin stake

2011-02-09 11:41

Johannesburg - Cell C is selling its 50% shareholding in Virgin Mobile but will continue as network partner, Virgin said on Wednesday.

Virgin Mobile SA's "board has agreed to a shareholders' restructuring whereby Cell C will sell its 50 percent stake in Virgin Mobile", the company said in a statement.

Virgin Group of the UK (Virgin) will increase its stake from 50% to 55%.

Calico Investments of the Bahamas (Calico) will acquire the remaining 45% stake. Calico, an investment company focused on opportunities in emerging markets and in Africa, will invest more growth capital into Virgin Mobile.

The transaction is still subject to certain conditions, including approvals from the Competition Commission and Exchange Control.

It was expected to be finalised by April 2011.

Cell C will continue as Virgin Mobile's network partner under an updated network services agreement.

Virgin Mobile was launched in 2006.