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R/€ = 14.75 Change: -0.05
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Au 1252.37 $/oz Change: 5.57
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Blue Label seals amended binding Cell C recapitalisation agreements

19th June 2017 BY: Natasha Odendaal
Creamer Media Deputy Editor Online

JSE-listed Blue Label Telecom’s implementation of its recapitalisation of mobile operator Cell C is scheduled for the first week of August as the final amended equity transaction agreements are signed.

The amended binding Cell C recapitalisation agreements will see Blue Label narrow the mobile operator’s debt further, from an initially planned R8-billion to R6-billion.

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Further, Blue Label increased its vendor consideration placement from R2-billion to R2.75-billion, at a price of R15 a Blue Label share.

The Prepaid Company, which maintained its subscription at 45% of Cell C for a subscription price of R5.5-billion, 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.

The implementation remained subject to Blue Label shareholder approval in a general meeting, which will be convened before the end of July, as well as regulatory approvals and the Prepaid Company confirming that it is satisfied with the composition of the net borrowings of Cell C.

Blue Label has obtained irrevocable undertakings from about 53% of shareholders to vote in favour of the Cell C recapitalisation, including the vendor consideration placement of R2.75-billion. 

EDITED BY: Creamer Media Reporter
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