Telecommunications company Cell C has received a R1.5-billion equity investment from its majority shareholder Dubai-based Oger Telecom, the company announced on Thursday evening.
Oger Telecom holds a 60% direct shareholding in Cell C, as well as 15% indirect shareholding through its wholly owned subsidiary Lanun Securities. Black economic-empowerment partner CellSaf owns the remaining 25%.
Cell C CEO Alan Knott-Craig said in a statement that the foreign investment into South Africa demonstrated the confidence Cell C shareholders had in the country and the company.
Global consulting and research firm Frost & Sullivan information and communications technology research analyst Chipo Ngongoni agreed, adding that he expected the investment to be poured into infrastructure upgrades and expansions to reinforce its drive to attract more customers.
She added that Cell C, which currently held a 15.4% market share, would start to attract more low-income users on the back of a number of changes and price reductions on voice and data service at the company. Further, as the voice market was already saturated, telecommunications groups were expected to provide more value-for-money products.
Cell C last week dropped its rates to 99c a minute, with per second billing from the first second of a call, in its latest promotion ‘99c For Real.’