Cell C\u2019s black equity partner CellSAF has reportedly threatened to prevent the network operator\u2019s deal with\u00a0Blue Label Telecoms from going through.<\/p>\n
Blue Label plans to buy a\u00a045% stake in Cell C for R5.5 billion, which is part of a move to\u00a0reduce the network\u2019s net borrowings to R6 billion.<\/p>\n
According to a report by BusinessDay<\/strong><\/a>,\u00a0CellSAF accused shareholder Oger Telecom of \u201cnot working in the best interest of Cell C\u201d.<\/p>\n CellSAF holds a 25% stake in the firm that owns Cell C, 3C Telecommunications.<\/p>\n The report comes after\u00a0CellSAF\u00a0launched a court challenge against the Blue Label deal in November<\/strong><\/a>.<\/p>\n CellSAF said in court papers it was not informed of the deal or given the opportunity to comment on it or consider the transaction before it went ahead, reported Reuters<\/strong><\/a> at the time.<\/p>\n \u201cShould the black empowerment partner succeed in derailing the R5.5bn investment into Cell C, it could complicate the operational viability of the debt-laden operator,\u201d said BusinessDay.<\/p>\n Should the planned deal go through, CellSAF\u2019s indirect shareholding in Cell C would be reduced to\u00a07.5%.<\/p>\n CellSAF chairman\u00a0Mathews Phosa said diluting Cell C\u2019s\u00a0black equity would be \u201cillegal and improper\u201d, according to the report.<\/p>\n The report stated that\u00a0CellSAF has approached ICASA to stop the deal going ahead.<\/p>\n
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