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...

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