04 November 2022
After years of negotiations, Cell C has finally completed its recapitalization.
Blue Label Telecoms, the main Cell C shareholder, had to enter into ‘binding long-term agreements’ with Cell C and various financial stakeholders, including certain shareholders and creditors of the company. As a result, Cell C’s debt has been restructured to certain secured lenders for a total amount of 7.3 billion rand. Blue Label will provide liquidity via a secured loan of 1.46 billion rand.
Cell C’s recapitalization is the final post of its recovery strategy, undertaken by Blue Label, after its entry into the capital of the company in August 2017 for 5.5 billion rand. Douglas Craigie Stevenson, president and CEO of Cell C, said that the transaction “deleveraged the balance sheet, provided cash to operate and put the company on a path of long-term growth and sustainability.”