Cell C’s black equity partner opposes plans
Cell C’s black equity partner, CellSaf, has threatened to scupper Blue Label Telecoms’ significant investment in the cellphone operator. On Sunday, the minority shareholder accused Oger Telecom of not working in the best interest of Cell C and threatened legal action if Blue Label’s proposed acquisition of a 45% interest in Cell C went ahead on Tuesday. Should the black empowerment partner succeed in derailing the R5.5bn investment into Cell C, it could complicate the operational viability of the debt-laden operator. CellSaf owns 25% of Cell C’s holding company, 3C Telecommunications. Saudi Arabia’s fixed-line and mobile network operator, Oger Telecom, owns the rest. If the deal went ahead as expected this week, CellSaf’s indirect shareholding in Cell C would be reduced to 7.5%. CellSaf would be expected to assume additional liabilities of almost R3bn, CellSaf said. CellSaf chairman Mathews Phosa said the shareholders would not allow Cell C’s black equity to be diluted. Cell C’s bla...
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