Blue Label in R1.9bn deal for 3G Mobile

PREPAID airtime, electricity and ticket distribution company Blue Label Telecoms has concluded an agreement with 3G Mobile and its shareholders to acquire 100% of 3G’s shares for R1.9 billion, through its wholly-owned subsidiary The Prepaid Company (TPC).

Blue Label said the shares in 3G Mobile would be acquired in two stages, with the initial acquisition by TPC of 47.37% of the issued share capital of 3G for a purchase consideration of R900 million being subject to Blue Label obtaining necessary third-party consents and the Cell C recapitalisation becoming unconditional.

The acquisition of the remaining 52.63% of the issued share capital of 3G Mobile for a purchase consideration of R1bn is also subject to the initial acquisition becoming unconditional in accordance with its terms and any regulatory approvals.

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, and has distribution rights for all major tier-one and tier-two mobile device and handset manufacturers, including Apple, Samsung, Huawei, HiSense, ZTE and Nokia. Through its wholly-owned subsidiary, Comm Equipment Company (CEC), 3G Mobile provides the financing of the mobile handset component of post-paid contracts to cellular networks like Cell C.

At present, the CEC finance book is approximately R3bn.

The net profit after tax of 3G Mobile for its year ended December 31, 2016, amounted to R248m. – ANA