Oger gives S Africa unit $180m to boost network
Dubai, May 28, 2012
Oger Telecom, 35-per cent owned by Saudi Telecom, will inject $180 million into its South African subsidiary Cell C to improve the coverage and quality of the unit's network, the Dubai-based firm said.
Cell C has about 13 per cent of the mobile market in Africa's top economy, but is a distant third to MTN and Vodacom and earlier this year its newly appointed chief executive was reported as saying the firm's strategy would be to take customers from its larger rivals.
To facilitate this, majority shareholder Oger will inject $180 million into Cell C.
'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,' Oger said in an emailed statement.
The investment will not alter Oger's 75 per cent holding in Cell C, with the remaining 25 per cent owned by black empowerment group CellSaf.
Cell C carries about 87 per cent of its traffic on its own network, covering 92 percent of the population and about 35 per cent of South Africa's geography, according to its website.
Oger, part of Saudi Arabia's Oger group, also holds a 55 per cent stake in Turk Telekom. – Reuters