JSE-listed technology firm Altron announced on Wednesday that Autopage’s mobile subscribers would be sold for R1.5 billion. By Staff Writer
The Autopage customers would be sold to MTN, Cell C and Vodacom.
The tech firm added that Autopage workers would not be transferred to the three mobile operators.
As part of the transaction, Autopage has signed a 24 month restraint of trade in favour of MTN, Cell C and Vodacom not to compete with them as a cellular service provider in South Africa.
During September 2014 and after Autopage entered into a sale agreement with Nashua Mobile to acquire Nashua’s Cell C subscriber base, the Independent Communications
Authority of South Africa introduced mobile termination rate reductions in the mobile phone industry.
The mobile termination rate reductions has affected service providers such as Nashua Mobile and Autopage.
“Taking into consideration the impact which, among others, these mobile termination rate reductions will have on Autopage’s business in the future, the board of Autopage has, subject to the conditions precedent set out below being fulfilled, agreed to dispose of its GSM subscriber bases to the purchasers (MTN, Cell C and Vodacom,” Altron said in a statement.
Furthermore, MTN has also agreed to pay R219 million plus VAT to acquire Autopage’s handset receivables book pertaining to its subscriber base.