Following news last month that Telkom was set to acquire Cell C, Blue Label Telecoms has put in an offer to by a 35% stake in the network.
Blue Label Telecoms is the latest name to propose an offer to buy Cell C, offering to purchase a 35% stake in the network for R4 billion ZAR, following Telkom’s unsuccessful purchase of the company.
The offer forms part of a recapitalisation of the company, which Blue Label would participate in amongst other investors.
Follow the implementation of the deal, if successful, Cell C’s debt would be reduced to a maximum of R8 billion ZAR.
On behalf of all employees of Cell C, the firm’s management has also submitted a binding offer that would see co-investment in the company between the firm’s current shareholder, 3C Telecommunications and Blue Label Telecoms.
If this deal were to proceed, the net result would see a restructuring where 3C Telecommunications would hold a 35% stake in the company, management and staff 30%, and Blue Label 35% of the ordinary shares of the network.
The proposed transaction would occur by the 1st of June 2016.
What are your thoughts on the potential acquisition of Cell C? Could this be a better purchase option than Telkom? Be sure to let us know in the comments below!