{"id":836474,"date":"2025-09-01T08:29:00","date_gmt":"2025-09-01T06:29:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=836474"},"modified":"2025-09-01T09:00:00","modified_gmt":"2025-09-01T07:00:00","slug":"major-restructuring-hitting-cell-c","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/836474\/major-restructuring-hitting-cell-c\/","title":{"rendered":"Major restructuring hitting Cell C"},"content":{"rendered":"\n<p>Blue Label Telecoms (Blu Label Unlimited) has entered into a binding implementation agreement relating to the pre-listing restructuring of Cell C.\u00a0<\/p>\n\n\n\n<p>Blu Label previously announced that it was looking to list Cell C on the JSE following a troubled period of ownership.\u00a0<\/p>\n\n\n\n<p>The company said that the listing will help show the strengths of both entities, with investors allowed to own a direct stake in Cell C.&nbsp;<\/p>\n\n\n\n<p>As is typically the case with any Blu Label and Cell C arrangement, the transaction details are relatively complex.\u00a0<\/p>\n\n\n\n<p>The pre-listing restructuring aims to optimise Cell C\u2019s capital structure and balance sheet ahead of its listing on the JSE.\u00a0The pre-listing restructuring includes the following key elements:\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The conversion of various claims totalling R3.7 billion held by The Prepaid Company (TPC) against Cell C into Cell C equity shares;<\/li>\n\n\n\n<li>The transfer of 100% of the shares in CEC by TPC to Cell C in exchange for Cell C equity shares, which exchange will occur at a price of R2.15 billion;<\/li>\n\n\n\n<li>The transfer of airtime with a sales value of between R7.3 billion and R7.5 billion including VAT (the exact value to be determined by TPC), from TPC to Cell C in exchange for Cell C equity shares;\u00a0<\/li>\n\n\n\n<li>The acquisition by TPC of the shares in Cell C held by SPV4 and SPV5 in settlement of the debt obligations of those entities to TPC; and&nbsp;<\/li>\n\n\n\n<li>The Cell C ListCo Flip-Up, where Cell C shareholders will exchange their Cell C shares for Cell C ListCo shares in preparation for the future listing of Cell C ListCo.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Why the change<\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/02\/Blue-Label-Telecoms.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/02\/Blue-Label-Telecoms-1024x576.jpg\" alt=\"\" class=\"wp-image-811935\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/02\/Blue-Label-Telecoms-1024x576.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/02\/Blue-Label-Telecoms-300x169.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/02\/Blue-Label-Telecoms-768x432.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/02\/Blue-Label-Telecoms.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure><\/div>\n\n\n<p>Blu Label said that it will also ensure that the Cell C management team have an appropriate management incentive structure in place as per the listing preparation.\u00a0<\/p>\n\n\n\n<p>The group said that the pre-listing restructuring, Cell C listing, and sell-down are expected to benefit BLT, its shareholders, and cell C significantly.<\/p>\n\n\n\n<p>The group said that following the implementation of the pre-listing restructuring, Cell C will be structured efficiently to facilitate the Cell C listing.&nbsp;<\/p>\n\n\n\n<p>From Blu Label\u2019s perspective, the Cell C listing is expected to enhance its value and, in turn, restore its shareholder value.\u00a0<\/p>\n\n\n\n<p>The group said that Cell C will have independent access to capital markets, which it may use to support further growth and finance acquisitions or investments.<\/p>\n\n\n\n<p>Cell C is also undergoing a massive change and has adopted a capital-light structure. While it still owns spectrum, the group roams off MTN\u2019s network as an MVNO.&nbsp;<\/p>\n\n\n\n<p>Cell C is the service provider for several other MVNOs, including the rapidly growing Capitec Connect, which is adding over 100,000 customers per month.&nbsp;<\/p>\n\n\n\n<p>The net asset value of Cell C is R8.3 billion as of 31 May 2025, with its operating profits attributable to Cell C being R1.6 billion.<\/p>\n\n\n\n<p>Despite this, the group\u2019s latest financials showed it was <a href=\"https:\/\/businesstech.co.za\/news\/telecommunications\/836079\/major-south-african-company-still-technically-insolvent\/\">technically insolvent<\/a>, with negative equity of R1 billion.&nbsp;<\/p>\n\n\n\n<p>However, shareholders have been advised that the announcement does not constitute an intention to float announcement, i.e. that Blue Label will be proceeding with the Cell C listing.&nbsp;<\/p>\n\n\n\n<p>The Cell C listing remains subject to market conditions, as well as shareholder, regulatory and other relevant approvals.&nbsp;<\/p>\n\n\n\n<p>The pre-listing restructuring is subject to the fulfilment or waiver of suspensive conditions typical for a transaction of this nature.<\/p>\n\n\n\n<p>It is planned that the pre-listing restructuring will be implemented shortly before Cell C\u2019s listing, if it proceeds.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Blue Label is pushing ahead with a restructuring of Cell C ahead of the planned IPO of the telcos company. <\/p>\n","protected":false},"author":95,"featured_media":836475,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[6064,42,175],"class_list":["post-836474","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-blue-label","tag-cell-c","tag-jse"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/836474","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=836474"}],"version-history":[{"count":2,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/836474\/revisions"}],"predecessor-version":[{"id":836479,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/836474\/revisions\/836479"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/836475"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=836474"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=836474"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=836474"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}