Nedbank Capital, the investment banking business of the Nedbank Group, has concluded a private equity transaction for a 32,9% stake in the GloCell Group.

The financial terms were not disclosed.

Clive Howell, head of private equity for Nedbank Capital, said: “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.”

Established in 2001, GloCell is a R5bn a year independent cellular telecommunications group operating in South Africa, with Investec and Nedbank as major shareholders.

GloCell specialises in prepaid, post-paid and virtual products and services.

GloCell serves all South African network operators through 8,000 channel partners consisting of retailers, dealers, wholesalers and through subsidiary Jabba Mobile which distributes product through field agents.

Channel partners include: MWEB, Netcare, selected Caltex Fresh Stop stores, Star Mart, Build-It, Alpha Pharm Pharmacies, Express Stores, Nu Shop, ICC and also Essential Hardware.

GloCell is also one of South Africa’s leading independent airtime distributors dispensing up to R500 million monthly prepaid airtime through major wholesalers, retailers, chains, independent dealers, agents and distributors.

Alessandro Mariola, GloCell CEO, said: “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.”

“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,” he said.