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.<\/p>\n
\u201cA recapitalised Cell C is good for the industry, the economy, and the consumer at large,\u201d said Cell C CEO, Jose Dos Santos.<\/p>\n
\u201cThe 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,\u201d Dos Santos said.<\/p>\n
Cell C’s recapitalisation strategy is through Blue Label Telecoms and other partners, which will see the operator\u2019s 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.<\/p>\n
The recapitalisation of Cell C would increase the ownership of the company by South African shareholders from 25% to over 86%.<\/p>\n
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.<\/p>\n
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.<\/p>\n