{"id":117868,"date":"2016-03-24T07:06:38","date_gmt":"2016-03-24T05:06:38","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=117868"},"modified":"2016-03-24T07:45:34","modified_gmt":"2016-03-24T05:45:34","slug":"cell-c-running-at-a-r3-8-billion-loss-shareholder","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/mobile\/117868\/cell-c-running-at-a-r3-8-billion-loss-shareholder\/","title":{"rendered":"Shareholder alleges Cell C running at a big loss: report"},"content":{"rendered":"<p>One of Cell C&#8217;s biggest shareholders has initiated legal proceedings to hamper a recapitalisation process with Blue Label Telecoms, according to a report by<strong><a href=\"http:\/\/www.bdlive.co.za\/business\/technology\/2016\/03\/24\/cell-c-in-legal-fight-with-bee-partner\" target=\"_blank\"> BDLive<\/a><\/strong>.<\/p>\n<p>CellSaf &#8211; an empowerment group which holds a 25% stake in the telco group &#8211; has reportedly handed in court documents seeking to have Cell C parent company 3C Communications liquidated.<\/p>\n<p>Blue Label Telecoms is set to purchase a 35% stake in Cell C for R4 billion. As part of the deal, 3C Telecommunications will put money into the company to reduce debt and will retain a 35% stake in South Africa&#8217;s third largest operator.<\/p>\n<p>The mobile operator\u2019s management and staff will own the remaining 30% of the company.<\/p>\n<p>According to BDLive,\u00a0CellSaf executive Solomon Mankazana is alleging that 3C Telecommunications is &#8220;both financially and commercially insolvent, and is unable to pay its debts&#8221;.<\/p>\n<p>He said 3C was trading recklessly and fraudulently, that 75% of the share capital had been lost, and that liabilities exceeded assets by about R15 billion.<\/p>\n<p>The executive said CellSaf had not seen verified or audited financial statements for the group, and that the company operated under a veil of secrecy.<\/p>\n<p>According to Business Day, CellSaf estimates that Cell C made an operating loss of R2.3 billion in the 2014 financial year, and a loss of R3.8 billion for 2015.<\/p>\n<p>Majority stakeholder, Oger Telecom, contended the application, saying it held no merit, and that only certain people within CellSaf were pushing this agenda for in their own interests.<\/p>\n<p>The group said the court application would be detrimental to the majority of CellSaf shareholders in the end.<\/p>\n<p>Cell C CEO, Jose Dos Santos contended in September last year, that the company was making a month-on-month profit, and had been for several quarters already.<\/p>\n<p>He said that the company had just shy of 22 million customers.<\/p>\n<h3 class=\"my-4\">More on Blue Label and Cell C<\/h3>\n<p><strong><a href=\"http:\/\/businesstech.co.za\/news\/telecommunications\/113914\/cell-c-linked-blue-label-telecoms-lifts-interim-revenue-to-r12-9-billion\/\">Cell C-linked Blue label Telecoms lifts interim revenue to R12.9 billion<\/a><\/strong><\/p>\n<p><strong><a href=\"http:\/\/businesstech.co.za\/news\/mobile\/108453\/details-emerge-on-cell-c-jse-listing-date\/\">Details emerge on Cell C JSE listing date<\/a><\/strong><\/p>\n<p><strong><a href=\"http:\/\/businesstech.co.za\/news\/telecommunications\/107359\/how-much-cell-c-is-really-worth\/\">How much Cell C is really worth<\/a><\/strong><\/p>\n<p><strong><a href=\"http:\/\/businesstech.co.za\/news\/telecommunications\/106797\/cell-c-in-r4-billion-sale-agreement-with-blue-label\/\">Cell C in R4 billion sale agreement with Blue Label<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of Cell C&#8217;s biggest shareholders has initiated legal proceedings to hamper a recapitalisation process with Blue Label Telecom, according to a report.<\/p>\n","protected":false},"author":10,"featured_media":54956,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[42,26],"class_list":["post-117868","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mobile","tag-cell-c","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/117868","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=117868"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/117868\/revisions"}],"predecessor-version":[{"id":117906,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/117868\/revisions\/117906"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/54956"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=117868"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=117868"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=117868"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}