Cell C: Bad blood over BEE
CellSAf, Cell C’s empowerment partner, is fighting the deal with Blue Label and Net1 over fears it will be shut out. But all is not well at CellSAf either, with claims that the company has not published audited financial reports for years, and rumours of mistrust between shareholders
Cell C’s BEE partner, CellSAf, is on the warpath. The company, whose sole investment is the 25% it owns in SA’s third mobile network operator through holding company 3C Telecommunications, wants to block the proposed R7.5bn recapitalisation deal in which Net1 and Blue Label will acquire a combined 60% of Cell C. If the proposed deal goes through in its current form, CellSAf will be diluted out of its holding, a prospect it seeks to prevent. The transaction is aimed at reducing Cell C’s huge debt. CellSAf has already instituted legal action to stop the deal, saying it was not consulted. It has been an investor in Cell C since inception, having started off with a 40% holding. The investment cost it "seed capital" of USD$98m, though this is disputed by Oger Telecom, the 75% shareholder in Cell C, which insists CellSAf has not contributed financially. The empowerment company, however, had to reduce its stake since it could not afford to stump up its portion in the numerous recapitalisat...
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.