Icasa can obstruct Blue Label deal with Cell C
S&P says delays are one of the reasons for the downgrade, while the mobile operator battles a large debt load
The Independent Communications Authority of SA (Icasa) could scupper Cell C’s survival plans if it does not allow Blue Label Telecoms to use the mobile operator’s spectrum. Ratings agency S&P Global Ratings (S&P) cited on Tuesday the uncertainty over the use of spectrum as one of the reasons it had downgraded SA’s third-largest mobile operator to the lowest junk rating. Blue Label made an offer to acquire a 45% stake in struggling Cell C in October 2016 in a R5.5bn deal. The ratings agency’s decision comes at a time when the proposed transaction still hangs in the balance, with a deadline of February 28.The deal is potentially life-saving for Cell C, which has been battling with a large debt load. In its statement, S&P said the delays in concluding the restructuring agreement, had led to a cash crunch in which Cell C had missed interest payments on its senior secured bonds as well as other unrated debt instruments. The agency said there were also question marks over whether Icasa co...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.