Blue Label Telecoms has announced that it signed a non-binding term sheet with key stakeholders as part of Cell C’s recapitalisation.
“This is a significant step in the transition to ensure a sustainable debt profile for the mobile operator,” Blue Label stated.
Blue Label has a 45% shareholding in Cell C through its subsidiary, The Prepaid Company.
Cell C CEO Douglas Craigie Stevenson said he is pleased to be closer to concluding a transaction to ensure Cell C is well placed to take advantage of strategic growth opportunities with the right capital structure.
“Restructuring the balance sheet and improving Cell C’s overall liquidity was part of the four-pillar strategy we put in place to turn the company into a profitable, competitive player in the South African telecoms industry,” Craigie Stevenson said.
“The other two pillars include improving operational efficiencies and implementing an innovative network strategy. We have made significant strides on the latter two.”
Craigie Stevenson said Cell C’s leadership team has been focused on implementing a strategy to ensure the company is a fit-for-purpose entity when the transaction concludes.
“The recapitalisation of this business is highly complex and it involves many stakeholders — we are grateful to our customers, employees and partners who have walked the road with us,” he said.
“We are excited about the future prospects and are poised to assume our competitive position in the market.”
Blue Label said the Umbrella Restructure Term Sheet sets out the general principles and is subject to the conclusion of all legal documentation and fulfilment of all conditions precedent.
This article was first published on MyBroadband