Oger Telecom South Africa, a wholly-owned subsidiary of Saudi Arabia-based group Oger Telecom, is reportedly planning to sell its stake in South African wireless operator Cell C, TMT Finance reports. According to the unnamed sources, however, the valuation of Cell C and the company’s current debt remain the main issues blocking Oger’s exit from the company. ‘It’s a very complex situation that has been looked at many times over the years and any transaction around Cell C will require substantial regulatory work,’ one source said. TeleGeography notes that in January 2015 Oger’s parent Saudi Telecom Company (STC) wrote down a ZAR1.2 billion (USD102 million) investment in Oger Telecom, attributing the impairment to its investment in Cell C.
According to TeleGeography’s GlobalComms Database, Cell C is wholly owned by holding company 3C Telecommunications, which is itself owned by Oger Telecom South Africa (60%), Black Economic Empowerment (BEE) entity CellSAf consortium (25%), and Lanun Securities (15%). Saudi Arabian group Oger Telecom is the sole shareholder in Oger Telecom South Africa and Lanun Securities, giving it an overall 75% indirect stake in Cell C. Oger Telecom is 35%-owned by STC.