News
Capital restructuring to see South African mobile operator’s parent 3C Telecommunications reduce its stake to 35%.
The board of Cell C has approved a plan that will see its staff and airtime distributor Blue Label Telecoms acquire stakes in the South African mobile operator.
In a bid to cut debt, Cell C in December proposed a capital restructuring that would see management invest 2.5 billion rand (€145.4 million) in return for a 30% stake to be held by employees. Meanwhile, Blue Label offered to subscribe to 35% of Cell C’s share capital for 4 billion rand (€235.7 million).
Under the plan, Cell C’s debt will fall from "high double-digit numbers" to ZAR8 billion, Cell C said in a statement at the time, while Cell C parent 3C Telecommunications, a subsidiary of Saudi Arabia’s Oger Telecom, will see its stake fall to 35% from 100%.
The plan was proposed following failed merger talks with South African incumbent Telkom SA.
According to a report last week by News24, Cell C’s board has accepted the offers.
"This transaction will not only benefit Cell C and empower its staff, but more importantly, it will solidify Cell C’s assurance to its customers to provide the most innovative products and services, backed by continued growth and investment in its network," said Cell C chairman Mohammed Hariri in the report.
