South African wireless service provider Altech Autopage, a wholly-owned subsidiary of JSE-listed Allied Electronics Corporation (Altron), has agreed to buy Nashua Mobile’s Cell C client base for ZAR91.5 million (USD8.85 million). According to a press release, the purchase consideration is subject to a formula-based adjustment which is dependent on various factors (including average revenue per user [ARPU], churn and bad debts) associated with Nashua Mobile’s Cell C subscriber base between the date of fulfilment or waiver of the last of the conditions precedent to the transaction and the expiry of a six-month period thereafter. Autopage will settle 50% of the deal on the effective date and the balance after six months; the transaction is subject to approval from the relevant authorities.
As previously reported by TeleGeography’s CommsUpdate, in April 2014 domestic cellcos Vodacom and MTN agreed to buy out their respective subscribers contracted to telecoms reseller Nashua Mobile, following a pair of separate sale agreements worth ZAR2.26 billion. Nashua Mobile, a subsidiary of JSE-listed ICT group Reunert, also confirmed that as soon as the subscribers were migrated to the relevant acquiring parties it would cease its operations. The decision was taken as ‘it is unlikely that the business would generate acceptable returns’.