Cell C completes recapitalisation, net debt reduced to ZAR6bn

8 Aug 2017

South African wireless operator Cell C has concluded its recapitalisation, under which the company reduced its net debt to ZAR6 billion (USD494 million) from ZAR23 billion – including USD184 million of bonds which are fully hedged into the South African Rand (ZAR). The recapitalisation was made possible by a ZAR5.5 billion subscription for shares from Blue Label Telecoms and a further subscription from Net1 for ZAR2.0 billion. Following the closing of the transaction, Blue Label now holds 45% of Cell C, with 3C Telecommunications – itself owned by Oger Telecom 45.6%, the Employee Believe Trust 29.4%, and broad-based black empowerment (BBBE) grouping CellSAf 25% – in charge of 30%, Net1 (15%) and Cell C management and staff (10%). Cell C’s CEO Jose Dos Santos commented: ‘We are delighted to have concluded this two-year long process for the benefit of all our stakeholders. The recapitalisation provides a sustainable growth platform for Cell C that will promote healthy competition in the South African telecoms market to further drive down costs and improve our value offerings.’ The company said that it is currently in the process of completing the necessary regulatory notifications.

South Africa, Cell C, Oger Telecom