Cell C deal is done – Blue Label
Blue Label has informed shareholders that the recapitalisation of Cell C is complete, making it a 45% shareholder of the network operator. Blue Label own the stake through its subsidiary The Prepaid Company. The recapitalisation has reduced Cell C’s net borrowings to under R6 billion, said Blue Label.
In 2016, Blue Label announced it would take a 45% stake in Cell C.
The amended agreements Blue Label took to shareholders included:
- Net borrowings of Cell C to be reduced to a maximum of R6.0 billion (previously R8.0 billion).
- An increase in the Blue Label vendor consideration placement from R2.0 billion to R2.75 billion, at a price of R15.00 per Blue Label share.
- The Prepaid Company Proprietary Limited’s subscription remains unchanged at 45% of Cell C for a subscription price of R5.5 billion.
- The Prepaid Company has agreed to provide liquidity support, to the extent required, in the form of interest bearing subordinated loans of up to £60 million to a special purpose vehicle set up to hold shares in Cell C.
Blue Label also announced that its acquisition of 47.37% of 3G Mobile for R900 million has been completed.
- ^ 35% stake in Cell C for R4 billion (mybroadband.co.za)
- ^ Cell C coming in with more firepower following Blue Label deal (mybroadband.co.za)