TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Moves afoot to fix Eskom’s debt problem

      4 July 2022

      Audi South Africa to offer free connectivity upgrades

      4 July 2022

      Shock fuel price increase announced

      4 July 2022

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Wiocc’s data centre business, OADC, appoints CEO

      4 July 2022
    • World

      Tether fails to calm jittery nerves

      4 July 2022

      EU to impose wide-ranging new rules on the crypto industry

      3 July 2022

      Crypto hedge fund Three Arrows files for bankruptcy

      3 July 2022

      Meta girds for ‘fierce’ headwinds

      1 July 2022

      Graphics card prices plummet as crypto demand dries up

      30 June 2022
    • In-depth

      The NFT party is over

      30 June 2022

      The great crypto crash: the fallout, and what happens next

      22 June 2022

      Goodbye, Internet Explorer – you really won’t be missed

      19 June 2022

      Oracle’s database dominance threatened by rise of cloud-first rivals

      13 June 2022

      Everything Apple announced at WWDC – in less than 500 words

      7 June 2022
    • Podcasts

      How your organisation can triage its information security risk

      22 June 2022

      Everything PC S01E06 – ‘Apple Silicon’

      15 June 2022

      The youth might just save us

      15 June 2022

      Everything PC S01E05 – ‘Nvidia: The Green Goblin’

      8 June 2022

      Everything PC S01E04 – ‘The story of Intel – part 2’

      1 June 2022
    • Opinion

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022

      How AI is being deployed in the fight against cybercriminals

      8 April 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»News»Blue Label wraps up R5.5bn Cell C deal

    Blue Label wraps up R5.5bn Cell C deal

    News By Staff Reporter26 July 2017
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    [dropcap]A[/dropcap]fter more than 18 months of negotiation, Blue Label is finally poised to buy a 45% stake in Cell C for R5.5bn, a deal that is set to transform both companies. Blue Label shareholders approved the deal at a general meeting in Sandton on Wednesday.

    Prior to the meeting, Blue Label had already obtained irrevocable undertaking from 53% of shareholders to vote in favour of the deal, which will result in the restructuring of Cell C’s shareholding and its balance sheet, with interest-bearing debt reduced from about R23bn to less than R6bn.

    The deal, which is being done through Blue Label subsidiary The Prepaid Company, is now expected to become effective on 1 August.

    Blue Label last month said it had signed the “final equity transaction agreements” for the planned recapitalisation of Cell C. Under the plan, Cell C’s net borrowings will be reduced to a maximum of R6bn.

    The Prepaid Company has agreed to provide “liquidity support”, to the extent required, in the form of interest bearing subordinated loans of up to US$60m, to a special purpose vehicle set up to hold shares in Cell C.

    The recapitalisation is expected to put Cell C in a stronger position to compete with its bigger rivals, Vodacom and MTN.

    The deal comes at the same time that Blue Label is acquiring handset distributor 3G Mobile — parent of Comm Equipment Company — for R1.9bn. This second deal forms part of a plan by the JSE-listed company to get customers that already buy its products, including prepaid airtime, to spend more with it.

    “If we could just get the same customers to buy more from us, we’d double our business,” said co-CEO Brett Levy in a recent interview with TechCentral. Hardware, he said, is a “great add-on” to Blue Label Telecoms and the 3G Mobile acquisition would enhance the group’s earnings. — (c) 2017 NewsCentral Media

    3G Mobile Blue Label Telecoms Brett Levy Cell C The Prepaid Company top
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleCell C appoints chief digital officer
    Next Article Cell C said to raise billions in new bond sale

    Related Posts

    Moves afoot to fix Eskom’s debt problem

    4 July 2022

    Audi South Africa to offer free connectivity upgrades

    4 July 2022

    Shock fuel price increase announced

    4 July 2022
    Add A Comment

    Comments are closed.

    Promoted

    The MSP value proposition has evolved – here’s why it matters

    4 July 2022

    Presenting the cloud finance in South Africa survey with AWCape and Sage

    4 July 2022

    The Equiano cable has landed

    4 July 2022
    Opinion

    Has South Africa’s advertising industry lost its way?

    21 June 2022

    Rob Lith: What Icasa’s spectrum auction means for SA companies

    13 June 2022

    A proposed solution to crypto’s stablecoin problem

    19 May 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.