Cell C’s planned recapitalisation, in terms of which JSE-listed Blue Label Telecoms will acquire 45% of the mobile operator for R5,5bn, has hit turbulence.
News wires, including Reuters, reported on Thursday that Cell C shareholder CellSAf has launched a court challenge against the planned restructuring.
CellSAf has filed court papers seeking to have the transaction set aside, Reuters said on Thursday.
According to the news agency, CellSAf is unhappy that it allegedly wasn’t afforded the opportunity to comment on the restructuring plan before it went ahead.
CellSAf holds a one quarter stake in Cell C’s parent company.
In terms of the planned restructuring, Cell C will reduce its net borrowings to less than R6bn. Blue Label shareholders last week voted in favour of the deal. — (c) 2016 NewsCentral Media