The board of South African wireless operator Cell C has accepted an offer from Blue Label to acquire a 35% stake in the cellco for ZAR4 billion (USD256 million), TechCentral writes. In addition, the board has also granted its approval to an offer from Cell C’s staff and management to acquire 30% of the company’s share capital for ZAR2.5 billion. The agreements however are still subject to customary regulatory approvals.
As previously reported by TeleGeography’s CommsUpdate, in December 2015 Blue Label and Cell C’s majority owner Oger Telecom signed an agreement for the sale of a 35% stake in the South Africa’s third largest cellco by subscribers, with the transaction expected to take effect from 1 June 2016. 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%). Following the conclusion of the deal, 3C Telecommunications (CellSAf and Oger Telecom) will hold 35% of the cellco’s equity, Blue Label will own 35%, while Cell C’s staff and management will be in charge of the remaining 30%.