3C rejects CellSAf’s hostility to Cell C deal
3C TELECOMMUNICATIONS, the holding company for SA’s third-largest cellular services provider, Cell C, has dismissed efforts by an empowerment shareholder to disrupt a proposed recapitalisation exercise spearheaded by JSE-listed telecoms specialist Blue Label.3C was responding to a recent liquidation application by its empowerment shareholder CellSAf, which holds an effective 25% of Cell C.CellSAf believed that it would be prejudiced by the Blue Label transaction, which — linked to new investments by Cell C staff and 3C’s controlling shareholder Oger Telecoms SA (Otsa) — would dilute its effective stake in Cell C to just a 9% shareholding.Last week, Business Day reported that CellSAf alleged in court papers that 3C was "both financially and commercially insolvent and is unable to pay its debts".The matter is likely to be heard in the High Court in Johannesburg only in June. But a responding affidavit by 3C alleged executives at CellSAf were motivated by "something other than a bona f...
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