Altech Autopage, part of the Altron TMT stable of companies, has reached agreement to purchase the Nashua Mobile Cell C subscriber base of more than 65,000 subscribers.

 

The purchase price is R91,5 million but will be adjusted by formula after six months. An upfront payment of R45,75 million will be made with the balance deferred for six months following an assessment of the actual performance of the subscribers in key measures such as churn, ARPU, and bad debts. The maximum amount paid would be R95,75  million with no minimum amount.

 

Nashua Mobile is a wholly-­‐owned subsidiary of JSE-­‐listed Reunert.

 

This decision follows an extensive strategic review of Altech Autopage given industry developments.

 

“As the only remaining Independent Service Provider, Altech Autopage is unique in that it is able to provide its customers with differentiated network choice and offerings. We will continue to diversify the business from being purely a GSM Service Provider to delivering broader converged solutions, a strategy that is already paying dividends. As part of the recently formed Altron TMT business, Altech Autopage is well positioned to integrate voice, data and multimedia services seamlessly,” said Craig Venter, Group Executive: Altron TMT / Chief Executive Officer: Altech.

 

Altech Autopage Managing Director, Boyd Chislett, commented: “In our last financial results ended 28 February 2014, we saw encouraging growth on new subscriber average revenue per user (ARPU), while churn remained at better than industry acceptable levels. Added to this, our subscriber numbers increased to over one million customers, while end to end data and telephony offerings to enterprises showed very positive growth for our evolving business model.”

 

“Furthermore, the expansion of Altech Autopage’s retail outlet footprint is key to providing a distinguished service to our customers and to position Altech Autopage for future growth in the telecommunications market. We are accelerating the roll out of new stores aggressively and in parallel are also actively recruiting new business partners to run these stores,” he concluded.

 

Nashua Mobile’s Cell C customers will be incorporated into Altech Autopage’s business, and customers will be billed and serviced through Altech Autopage channels and services points. Altech Autopage will embark on a robust process to make the migration of the customers as seamless as possible and continue to offer customers uninterrupted service of the highest standard. Altech Autopage continues to actively invest in systems to enable it to offer its customers the best tariff and network advice.

 

Further details of the transaction will be made available in due course.