Cell C said to seek debt reduction in Blue Label deal
Cell C is seeking to cut its debt by 73% as part of a deal that will help SA’s third-largest cellphone operator sell a stake to Blue Label Telecoms while retaining its operating licence, according to two people familiar with the matter. Under the proposed transaction, Cell C would split about R9bn of borrowings into three special purpose vehicles (SPVs), said the people, who asked not to be identified because the talks were private. Alongside stake sales to Blue Label and payment services provider Net1 UEPS Technologies, the plan would cut the overall debt to R6bn from about R22bn, they said. The special purpose vehicles would take on debt held by Nedbank Group, a group of Chinese lenders and a €400m bond issued by Cell C that matured in July 2018, the people said. In exchange, the vehicles would control a combined 30% stake in Cell C. The proposal is the latest attempt by Cell C to push through the sale of a 45% shareholding to Blue Label for R5.5bn, a deal agreed in October after ...
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