Cell C to get $180m cash boost
The cash boost is meant to go towards improving the coverage and quality of the unit’s network, Dubai-based Oger said.
Cell C has about 1% of the mobile market in Africa’s top economy, but is a distant third to MTN and Vodacom and earlier this year its newly appointed chief executive was reported as saying the firm’s strategy would be to take customers from its larger rivals.
To facilitate this, majority shareholder Oger will inject $180-million into Cell C.
“The funding will be used to support the company’s plans, which include the funding of new products and enhancing the quality and coverage of Cell C’s network,” Oger said in an emailed statement.
The investment will not alter Oger’s 75% holding in Cell C, with the remaining 25% owned by black empowerment group CellSaf.
Cell C carries about 87% of its traffic on its own network, covering 92% of the population and about 35% of South Africa’s geography, according to its website.
Oger, part of Saudi Arabia’s Oger group, also holds a 55% stake in Turk Telekom. – Reuters.