According to Blue Label Telecoms, which is currently buying a 35% stake in telecoms provider Cell C, the effective date of the transaction is set at 1 June 2016. Brett Levy (pictured), Blue Label joint-CEO, has said that while a few hurdles still lie ahead, things are otherwise "looking positive" for the transaction.
Blue Label is purchasing its stake in Cell C for R4 billion. As part of the deal, current shareholder 3C Telecommunications will put money into Cell C to reduce debt, also retaining a 35% stake in the company. The equity structure of Cell post acquisition will thus be 35% share held by 3C Telecommunications, a 35% share held by Blue Label Telecoms, and a 30% share held by Cell C Management.
Furthermore, according to Levy, a listing for Cell C is not far off. Levy says a restructured Cell C offers compelling growth prospects - including listing - down the line. Jose dos Santos, Cell C CEO, previously confirmed that the company is planning to list on the JSE in the next three or so years. Dos Santos said Cell C would use this time to position the company strongly for a favourable listing.
- Stay connected, up to date and in the loop on what is happening in the world of finance and keep track of newly published expert insights and interviews with CFOs and CEOs. Become an online member and receive our newsletter, follow us on Twitter, like us on Facebook and join us on LinkedIn.
