Net1 on Wednesday announced that it has agreed with Blue Label Telecoms\u00a0to\u00a0join as a party of the restructure agreement with Cell C.<\/p>\n
Separately however, Net1 has also offered to acquire a direct stake of 15% of the issued share capital of Cell C, for a consideration of R2 billion.<\/p>\n
The company said it has also concluded a memorandum of understanding to acquire 49.6% of DNI-4PL Contracts with an option to acquire a controlling stake in DNI in the future.<\/p>\n
DNI is the leading distributor of mobile subscriber starter packs for Cell C and also distributes pre-paid airtime through an extensive network of field operatives and agents.<\/p>\n
This follows news that Blue Label Telecoms has entered into a binding agreement with Cell C for a subscription for 45% of the share capital of the network operator for R5.5 billion.<\/p>\n
\u201cThe company is also a party to the umbrella restructure agreement with Cell C and has offered to acquire a direct stake of 15% of the issued share capital of Cell C for a consideration of R2 billion,\u201d said\u00a0Net1\u00a0in a SENS statement.<\/p>\n
JSE-listed Blue Label Telecoms announced on Monday that it had entered into a \u2018binding umbrella restructure agreement\u2019 with Cell C, debt providers of the mobile operator, a third party investor, and other relevant parties to ensure that its acquisition deal goes ahead.<\/p>\n
Bloomberg reported last week that Telkom was again considering a bid of $1 billion (around R13 billion) for Cell C. However, Cell C said it is committed to its deal with Blue Label, which was initially announced as far back as December 2015.<\/p>\n