Nedbank Capital and GloCell have concluded a private equity transaction that will see Nedbank Capital Private Equity effectively acquiring a 32,9% stake in one of South Africa’s largest cellular airtime resellers and telecommunications businesses.
According to Clive Howell, head of private equity for Nedbank Capital, the relationship that has been built up between the two businesses over the past two years, combined with GloCell’s established market position and its growth potential, particularly in southern African cellular prepaid market, were the cornerstones on which the transaction was built.
“Nedbank Capital’s business model in the private equity space is to a great extent relationship driven and involves close working partnerships with businesses that we believe show strong entrepreneurial spirit, coupled with sustainable growth potential,” Howell explains. “Our dealings with GloCell have proven that this innovative cellular business more than demonstrates these characteristics.”
Howell also points to GloCell’s excellent position in SA’s technology convergence market, coupled with its strong brand recognition and extensive market reach, as further evidence of the company’s significant potential for lasting success and continued growth going forward.
“Nedbank Capital believes that GloCell is well positioned as a leading player in an industry that has real growth potential, and we anticipate that our investment in the business will serve as a catalyst for its future growth,” he explains.
Alessandro Mariola, CEO of GloCell, agrees, pointing out that the Nedbank private equity deal will empower the business to deliver on its long-term business strategy and enable it to maximise opportunities to expand the reach, value proposition and competitive advantage of the business.
“For the GloCell Group, the finalisation of this private equity deal represents an endorsement of what has already been a long-term relationship with Nedbank Capital,” Mariola says. “We look forward to both investing this capital injection to leverage strategic advantage and maximising Nedbank’s equity position in our business for mutual strategic and bottom-line benefits.”
Howell explains that this ability to be actively and strategically involved in GloCell going forward was a key component in the decision to enter into this partnership.
“GloCell is an exceptionally strong leader in the cellular telecommunications field in South Africa, with an excellent track record. It distributes Prepaid Airtime and connects in excess of 4-million cellular subscribers on an annual
basis for all the network operators through its 8 000 channel partners consisting of retailers, dealers, wholesalers and through its subsidiary Jabba Mobile which distributes product through field agents.
