Reunert increases share in Nashua Mobile
Thursday, 22 November 2001
Reunert has increased its stake in cellular service provider Nashua Mobile by acquiring Nedcor's 37,3% shareholding at a purchase price of R224,6 million. This brings Reunert's share to 95,3% with the remaining shares being held by Metropolitan Life. The transaction is effective from 1 December 2001.
In July last year Reunert, Nedcor and Metropolitan agreed to merge their cellular operations, Nashua Cellular and NedTel Cellular, into a new cellular service provider. The merger proved to be successful and the business gained critical mass to become the biggest independent corporate contract service provider in the country. The entity was recently renamed Nashua Mobile allowing greater synergy with Nashua in branding its products and services.
Says Reunert CEO Gerrit Pretorius, "Building and managing the Nashua brand equity is of strategic importance to Reunert. Nashua is acknowledged as one of South Africa's top brands and our customer base represents the top corporate companies in the country. Not only do we expect this acquisition to enhance our earnings, it will also complement the existing service offering to our corporate customer base. If the acquisition had been in effect from the start of our 2001 financial year it would have enhanced earnings per share by 2%."
Nashua Mobile has grown its market share by 15% the past year focusing mainly on the corporate contract market. It currently has approximately 250 000 contract subscribers and 20 000 prepaid.
"Nashua Mobile has upgraded its systems and added new products, clearly distinguishing us in a very competitive market.The company is well positioned to meet the demands of this competitive industry, and will do so," says Pretorius.
Innovative products and services include mobile banking, an electronic pre-paid recharge facility as well as the conversion of all users onto a single, sophisticated billing system; signaling the completion of a successful merger.
Future developments will focus on a revamped web presence with an electronic bill presentation facility, as well as a tariff optimiser
Nashua Mobile remains a business-focused service provider of Vodacom and MTN, and is in an advanced stage of negotiations with Cell C. This will firmly position it as a service provider of ultimate choice, advising subscribers of the most suitable network, tariff and handset for their communication requirements.
For more information contact
Carina de Klerk
Tel 011 517 9033 or 517 9000
Cell 083 631 5743