The group said that the sale would generate a combined gross sum of R2.26 billion plus VAT.
Nashua Mobile, a subsidiary of listed ICT group Reunert, said that it entered into “separate and distinct sale agreements” on 11 April 2014, to dispose of its MTN and Vodacom subscriber bases to the two biggest operators in South Africa.
The group is also in talks to offload its Cell C subscriber base. Nashua Mobile is “pursuing various alternatives for the disposal by Nashua Mobile of its Cell C subscriber base.”
“The boards of Reunert and Nashua Mobile were required to consider the long-term prospects for Nashua Mobile.”
“After careful consideration, the boards concluded that it is unlikely that this business would generate acceptable returns,” the group said.
Reunert said that the sale proceeds will be used to settle liabilities of Nashua Mobile to support the growth strategy of Reunert, and for the payment of dividends and/or repurchase of Reunert shares.
The transaction is subject to approval from the competition authorities.
In November, Reunert said that its Nashua business faced a challenging year, with the race for customers and declining business confidence impacting performance.
Nashua saw revenue decline by 6% to R6.8 billion – while operating profit declined by 24% to R636 million, from R839 million in 2012.