JSE-listed Blue Label says it has received approval by majority of its shareholders for the recapitalisation of mobile operator, Cell C, and its acquisition of 3G Mobile.
The matter relates to the conclusion of a binding umbrella restructure agreement for the recapitalisation of Cell C, by Blue Label, which was subject to the conclusion of the relevant transaction agreements.
“All the resolutions set out in the notice and proposed at the meeting were passed without modification by the requisite majority of shareholders,” the group said, following the conclusion of a general meeting on Wednesday.
“Closing of the Cell C recapitalisation is anticipated to commence on Tuesday, 1 August 2017, and as a result, Cell C’s net borrowings will be reduced to a maximum of R6 billion, and the Cell C recapitalisation will be complete,” it said.
Blue Label said it will undertake the Cell C Vendor Consideration Placement by placing 183,333,333 authorised but unissued Blue Label shares with committed third party investors at a price of R15.00 per Blue Label share, so as to raise R2.75 billion.
This will be used to part fund the participation by Blue Label, through its wholly-owned subsidiary The Prepaid Company, in the Cell C recapitalisation.
Further, Blue Label said that following the general meeting, the initial acquisition by Blue Label through its wholly-owned subsidiary, The Prepaid Company, of 47.37% of the issued share capital of 3G is anticipated to close on Friday, 28 July 2017.
“As a result, Blue Label will undertake the 3G Aacquisition issue by issuing 16,666,666 authorised but unissued Blue Label shares to the shareholders of 3G at a price of R15.00 per Blue Label share, as R250 million part payment towards the 3G purchase consideration,” it said.