Cell C sells 50% Stake in Virgin Mobile (South Africa)
Virgin Mobile, South Africa based MVNO, has announced that its mobile network partner, Cell C is selling its 50% stake in the company, although it will continue to provide the underlying network services for the virtual operator.
An investment company, Calico Investments of The Bahamas, is acquiring 45% of the company, while UK based Virgin Group is buying the remaining 5% to take its holding to 55%. The financial terms of the deal were not disclosed.
Calico is planning to develop a strategic relationship with Virgin Mobile and together with Virgin, will invest additional growth capital into Virgin Mobile.
According to Steve Bailey, CEO, Virgin Mobile, Virgin Mobile has shown consistent high subscriber growth and has significantly increased its base of higher ARPU post pay subscribers in South Africa over the last two years. It is time for them to capitalize on this growth and bring in an additional shareholder to invest in Virgin Mobile’s further expansion, which will enable us to deliver more exciting products and services to their valued customers. They also look forward to leveraging their updated network agreement with Cell C to provide improved performance to our customers.