CAPE TOWN - Net1 UEPS Technologies announced the completion of its 15% investment in Cell C for R2 billion and 45% investment in DNI-4PL Contracts, which is a distributor of Cell C’s mobile user starter-packs and prepaid airtime.
This comes as Blue Label Telecoms also completed its bid to buy a 45% stake in Cell C.The sale of stakes in Cell C is part of efforts to combat the mobile operator’s debts from R20bn to R6bn.
"The investments in Cell C and DNI were consistent with their approach of leveraging its infrastructures and pursuing strategic acquisition opportunities or partnerships to gain access to new markets or complementary products", said Net1.
Net1 is the distributor of welfare grants payments on behalf of South Africa Social Security Agency of more than R140bn to more than 17 million beneficiaries through its subsidiary, Cash Paymaster Services.
Net1 chief executive, Herman Kotze said, "The Cell C and DNI investments would allow the company to address the needs of the broader South African population by owning the value chain including the network, payment, product, distribution, and hardware."
Cell C’s chief executive, Jose Dos Santos said, "The conclusion of Cell C’s recapitalisation with the introduction of key strategic partners like Net1 and Blue Label would set the third largest South African mobile operator up to be a disruptor in the traditional mobile domestic market."
“With Net1’s products, logistical expertise, technology and rural footprint, along with distribution platforms of Blue Label and DNI, we are confident of picking up a significant amount of share in an otherwise relatively stagnant industry,” Dos Santos concluded.
-BUSINESS REPORT ONLINE