Cell C gets recapitalisation nod from Icasa, says CEO
The Independent Communications Authority of SA (Icasa) has ruled that Cell C followed the correct process in the notification of its recapitalisation transaction and has complied with all applicable regulations, says Cell C.
Cell C has sold a 60% stake to Blue Label (45%) and Net1 (15%) in a deal that is aimed at reducing the network operator’s debt.
In September, Icasa announced it was seeking legal advice on the deal, which Cell C has filed as a notification of change of ownership. Icasa said its preliminary view was that the deal ought to have been filed as an application for change of control. But Cell C revealed on Wednesday it was cleared of any wrongdoing.
"A recapitalised Cell C is good for the industry, the economy and the consumer at large," said Cell C CEO Jose dos Santos.
"The successful conclusion of this transaction has ensured a sustainable future for the company and its employees. We now have a solid foundation to really drive competition in an industry that has been marred by a duopoly at the expense of the consumer," he said.