{"id":824347,"date":"2025-05-16T09:03:16","date_gmt":"2025-05-16T07:03:16","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=824347"},"modified":"2025-05-16T09:03:22","modified_gmt":"2025-05-16T07:03:22","slug":"plans-to-list-cell-c-after-major-restructuring","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/824347\/plans-to-list-cell-c-after-major-restructuring\/","title":{"rendered":"Plans to list Cell C after major restructuring"},"content":{"rendered":"\n<p>Blue Label is considering a huge restructuring of Cell C to unlock value for shareholders, which includes a potential listing of the embattled mobile operator on the JSE.<\/p>\n\n\n\n<p>Blue Label is exploring a potential restructuring of the group, including its subsidiaries and associates, and the possible listing of Cell C on the Prime Segment of the Main Board of the JSE.<\/p>\n\n\n\n<p>Cell C has undergone a significant transformation in recent years amidst extreme struggles for the group, which is technically insolvent as per Blue Label&#8217;s latest results.<\/p>\n\n\n\n<p>Cell C is now using a capital-light approach to its mobile network, which uses its spectrum assets in combination with physical network infrastructure owned by other mobile network operators.<\/p>\n\n\n\n<p>Blue Label said that the Cell C executive management team has returned the telco company to a strong, sustainable growth trajectory, with operational and financial improvements.<\/p>\n\n\n\n<p>The company said the proposed restructuring would encompass several ancillary transactions to optimise Cell C&#8217;s capital structure and balance sheet in preparation for a listing.<\/p>\n\n\n\n<p>If Blue Label elects to implement the restructuring, it believes that the steps will be inter-conditional and contingent upon Cell C&#8217;s potential listing.<\/p>\n\n\n\n<p>It believes the restructuring will benefit the company and its shareholders significantly.<\/p>\n\n\n\n<p>If the restructuring takes place, it will allow investors to independently assess each business&#8217;s value and strategic focus.<\/p>\n\n\n\n<p>Blue Label said that key components of the restructuring also include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Airtime asset transfer:<\/strong> The Prepaid Company Proprietary Limited (TPC), a wholly owned subsidiary of Blue Label, which holds shares and debt claims in Cell C, will transfer Cell C airtime currently held by TPC on its balance sheet to Cell C in exchange for newly issued additional equity in Cell C.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Debt-to-equity conversion<\/strong>: TPC\u2019s outstanding debt claims against Cell C will be capitalised and converted into equity, further reducing Cell C\u2019s leverage.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Acquisition of Comm Equipment Company Proprietary Limited <\/strong>(CEC): Cell C will acquire 100% of CEC (a wholly owned subsidiary of Blue Label) from TPC in exchange for additional Cell C shares. CEC is a subsidiary responsible for Cell C\u2019s postpaid offerings. The internalisation will enable Cell C to assume full responsibility over its postpaid customer base, including supply chain oversight, commercial operations, marketing, billing, credit, and collections.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>SPV restructure<\/strong>: The Special Purpose Vehicles (SPVs) currently holding equity interests in Cell C will also be restructured as part of the broader initiative, aligning their ownership structures with the redefined capital framework.<\/li>\n<\/ul>\n\n\n\n<p>\u201cOverall, the restructure is intended to streamline operations, improve financial sustainability, and enhance Cell C\u2019s strategic readiness for long-term growth and potential listing,\u201d Blue Label said.<\/p>\n\n\n\n<p>\u201cThe internalisation will enable Cell C to assume full responsibility over its postpaid customer base, including oversight of supply chain, commercial operations, marketing, billing, credit, and collections.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cell C could soon list on the JSE as Blue Label looks to unlock value for its shareholders. <\/p>\n","protected":false},"author":95,"featured_media":696777,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[6064,42],"class_list":["post-824347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-blue-label","tag-cell-c"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/824347","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\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=824347"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/824347\/revisions"}],"predecessor-version":[{"id":824357,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/824347\/revisions\/824357"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/696777"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=824347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=824347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=824347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}