South African mobile operator Cell C has accepted an offer from Blue Label Telecoms to acquire 35 percent of the company for ZAR 4 billion, Fin24 reported. The boards of Cell C and its holding company, 3C Telecommunications, have also accepted an offer from Cell C management and staff to hold about 30 percent of the shares for ZAR 2.5 billion.
After the deal, Cell C’s net debt is expected to be reduced to ZAR 8 billion or less. 3C Telecommunications will own approximately 35 percent of shares at the close of the recapitalisation. The recapitalisation of Cell C is still subject to all parties securing funding and obtaining regulatory approvals. If successful, the expected effective date of the recapitalisation is 01 June 2016, Cell C said.
