JOHANNESBURG – PLANS by Blue Label Telecoms to purchase a stake of 45 percent in Cell C for R5,5 billion are to be implemented in November, subject to funding of all parties and necessary regulatory approval.
Cell C on Wednesday announced conditional agreements had been signed for the proposed recapitalisation of the company.
The proposed recapitalisation will reduce the net debt of the company to approximately R8 billion and enable the company to continue to deliver on its growth strategy in a sustainable manner.
The Management and staff of Cell C will subscribe for 25 percent of the issued capital and 3C Telecommunications will subscribe for the sufficient new equity to hold the remaining 30 percent of the total issued share capital.
“We are delighted to announce this partnership with Blue Label Telecoms and Cell C management and staff. This transaction allows Oger Telecom and 3C to remain invested in Cell C and participate in the value creation arising from this enhanced strategic relationship. We look forward to seeing Cell C achieving new heights,” says Mohammed Hariri, Chairman of Cell C and Oger Telecom.
Jose Dos Santos, Cell C Chief Executive Officer, says the recapitalisation provides a sustainable growth platform to build on our successes as we continue to drive customer value to realise our exciting growth potential.
“This is a transformational transaction for Cell C and we are extremely excited about the strengthening of our relationship with Blue Label Telecoms,” says Dos Santos,
Cell C is South Africa’s third largest operator with over 22 million subscribers.