Cell C, South Africa’s third-largest mobile phone operator, is likely to be floated on the JSE in the next three to four years, according to a media report published on Sunday. By Staff Writer
The Sunday Times newspaper report said the country’s third-largest mobile phone operator plans to use the next three years to position itself for a favourable listing.
“We think the markets will still be trying over the next two or so years, but we will use this time to make sure we have changed perceptions about this company and to ensure that there is an appetite to buy Cell C from a customer and listing perspective,” Cell C CEO Jose Dos Santos, told the Sunday Times.
South Africa’s biggest fund manager, the Public Investment Corporation (PIC) told the newspaper that it would consider investing in Cell C if it decided to go ahead with a listing. The PIC is invested in the country’s tow biggest mobile phone operators, Vodacom and MTN.
Cell C is currently in a process of being recapitalised.
The recapitalisation programme will reduce Cell C’s net debt from the high double-digit numbers to a very manageable maximum of R8 billion or less when implemented.
The target is to reduce the debt further over the next 12 months.
The board’s of Cell C and 3C Telecommunications have accepted a R4 billion offer by Blue Label Telecoms to subscribe for 35% of Cell C’s total issued share capital. They have also accepted a R2.5 billion offer from Cell C management and staff to subscribe for 30% of the total issued shares in the company.
Current Cell C shareholder 3C Telecommunications will also subscribe for a number of shares to hold about 35% of the total issued shares at the close of the recapitalization.
The full report is available in this week’s Sunday Times.