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Johannesburg - The investment banking business of the Nedbank Group has acquired a 32.9% stake of South African cellular airtime reseller and telecoms business GloCell.
GloCell - which was established in 2001 - describes itself on its website as a R5bn a year independent cellular telecommunication business.
GloCell adds that it distributes prepaid airtime and connects in excess of 4 million cellular subscribers on an annual basis for all network operators through its 8 000 channel partners. These partners consist of retailers, dealers, wholesalers and a GloCell subsidiary called Jabba Mobile.
Nedbank Capital notes that GloCell’s position in SA’s technology convergence market, along with its brand recognition and market reach were among reasons for the banking business to conclude the private equity transaction
“Nedbank Capital believes that GloCell is well positioned as a leading player in an industry that has real growth potential, and we anticipate that our investment in the business will serve as a catalyst for its future growth,” said Clive Howell, head of private equity for Nedbank Capital, in a statement.Alessandro Mariola, who is the Chief Executive Officer of GloCell, said the deal is expected to help the business deliver on its long-term business strategy.
“For the GloCell Group, the finalisation of this private equity deal represents an endorsement of what has already been a long-term relationship with Nedbank Capital,” Mariola says.“We look forward to both investing this capital injection to leverage strategic advantage and maximising Nedbank’s equity position in our business for mutual strategic and bottom-line benefits,” he said.
