VENTURES AFRICA – Oger Telecom, 35-percent owned by Saudi Telecom, has announced plans to inject $180 million into its South African subsidiary Cell C.
According to the company, the investment aims at improving the coverage and quality of the unit’s network. Cell C has about 13 percent of the mobile market in Africa’s largest economy, but is a distant third to MTN and Vodacom.
Earlier this year, Cell C’s newly appointed chief executive was reported as saying the firm’s strategy would be to take customers from its larger rivals.
Majority shareholder Oger aims at facilitating the strategy by injecting $180 million to fund improvement plans. According to the shareholder: ”The funding will be used to support the company’s plans, which include the funding of new products and enhancing the quality and coverage of Cell C’s network”
However, the investment does not alter Oger’s 75 percent holding in South Africa third largest cell company by subscribers against the 25 percent owned by black empowerment group CellSaf.
According to the company’s website, Cell C carries about 87 percent of its traffic on its own network, covering 92 percent of the population and about 35 percent of South Africa’s geography.
Oger, part of Saudi Arabia’s Oger group, also holds a 55 percent stake in Turk Telekom.