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Nextcom challenge hits snag

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 26 Mar 2001

Cellular contender Nextcom says nothing has changed in its legal challenge to the awarding of SA`s third cellular licence to the Saudi-backed Cell C consortium.

Nextcom`s position was thrown into confusion this week after reports that Union Alliance Holdings (UAH), the trade union investment company, will be withdrawing support for Nextcom and will be working with Cell C.

Cell C, which was provisionally awarded the contentious licence in February this year, has long said it would welcome working with losing bidders and their shareholders in establishing the third operator.

Nextcom CEO Bushy Kelobonye says UAH is acting like a shareholder of Nextcom while it has no direct stake in the consortium. But Union Alliance Media (UAM), the listed company which identifies itself as a wholly-owned subsidiary of UAH, is a direct shareholder in the group. UAM chief executive Anthony Glass is also a director of Nextcom and has on numerous occasions acted as spokesman for the group.

In a statement over the weekend, Kelobonye questioned UAH`s motives in its move and hinted at legal action against the company "if the company made any further moves to prejudice Nextcom".

Nextcom`s application for a judicial review of the process that led to the selection of Cell C will be heard in court on 2 May.

UAM shares were trading at a low of 18c during the morning, down from an intra-day high of 26c. The share fell from 80c to below 30c in February after the announcement that a licence will be issued to Cell C.

None of the parties involved in the matter, including Kelobonye, Glass and Cell C, could be reached for further comment at the time of publication.

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Cell C to roll-out, Nextcom fights on

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