Cell C gets recapitalisation nod from Icasa
Cell C on Wednesday, said it welcomed the decision by watchdog Icasa, which said that the country’s third largest operator followed the correct process in the notification of its recapitalisation transaction and that it has complied with all applicable regulations.
“A recapitalised Cell C is good for the industry, the economy, and the consumer at large,” said Cell C CEO, Jose Dos Santos.
“The successful conclusion of this transaction has ensured a sustainable future for the company and its employees. We now have a solid foundation to really drive competition in an industry that has been marred by a duopoly at the expense of the consumer,” Dos Santos said.
Cell C’s recapitalisation strategy is through Blue Label Telecoms and other partners, which will see the operator’s shareholding shift. Blue Label will have an effective 45% stake in the group, with Net1 holding 15%, and other special purpose vehicles owning minority stakes.
The recapitalisation of Cell C would increase the ownership of the company by South African shareholders from 25% to over 86%.
The participation of historically disadvantaged persons in Cell C increased from around 25% to more than 30% at ownership level, with Cell C management and staff participating in the equity of the company for the first time.
Updating its regulatory proceedings last month, Cell C said that it has provided detailed submissions to the Independent Communications Authority of South Africa (Icasa) and was dealing with complaints laid by its BEE partner, CellSAf, to the Competition Commission.
CellSaf is contesting the matter in the high court and had also lodged a complaint with the Competition Commission and Icasa.
Its said that Cell C “illegally excluded CellSAf from decision-making, involved multiple undeclared conflicts of interest; and breaches of fiduciary obligations; and, was approved by improperly-constituted boards of directors, relying on irregular resolutions”.
Read: Cell C reports R588 million loss as recapitalisation forges ahead
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