Cell C and Blue Label Telecoms have today announced that 45% of the mobile operator is now owned by Blue Label.
This announcement marks the conclusion of the recapitalisation of Cell C which has brought the net debt of the firm down to R6 billion, including the R1.9 billion in bonds hedged into the South African Rand.
“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 telecom market to further drive down costs and improve our value offerings,” Cell C chief executive officer, Jose Dos Santos said in a statement.
Blue Label Telecoms holds 45% in Cell C, 3C Telecommunications holds 30% (in turn held as 29.4% by the Employee Believe Trust, 45.6% by Oger Telecoms and 25% by broad-based black empowerment grouping CellSAf), Net1 has 15% and 10% of shares are held by Cell C Management and staff.
This marks the first time that Cell C staff and management can participate in the equity of the company.
The firm says that it now has the capital structure to improve financial returns and upgrade its infrastructure while also delivering on its strategic objectives.
“We would like to thank our incoming shareholders for their commitment to seeing through this long process and securing a healthy future for Cell C,” Dos Santos added.