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Cell C written down by R1.2bn: City Press

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 25 Jan 2015
Cell C CEO Jose dos Santos is unperturbed by the company's write down.
Cell C CEO Jose dos Santos is unperturbed by the company's write down.

SA's third-largest operator has had its value written down by R1.2 billion, the City Press is reporting this morning.

The paper reports that Saudi Telecom Company, which has a large indirect stake in Cell C, has impaired its investment in Cell C by R1.2 billion.

Saudi's stake in held by its subsidiary, Oger Telecom, which owns 75% of Cell C. Oger, in turn, is 35% owned by Saudi, giving Saudi a 26% stake in Cell C, reports City Press. Cell C is SA's third largest cellphone company, after Vodacom and MTN, with about a fifth of the local market.

Despite the impairment, Cell C CEO Jose dos Santos is optimistic about Cell C's future. He told the paper he was not concerned about the impairment. "Their results are their results, but for us it doesn't affect us at all."

Last May, Dos Santos said the company's performance was pleasing and, "while we still have some way to go, our shareholders are pleased with the path we are following now". At the same time, the company announced it would invest some R2.3 billion in its network last year.

However, Cell C - along with MTN and Telkom - has been seeking to cut costs through a retrenchment process. In October, trade union Solidarity said letters sent to some of its members indicate as many as 190 of Cell C's 1 458 staff members may be retrenched as the company restructures.

Dos Santos says the company has parted ways with about 300 staff members, according to the paper. He also told City Press he did not envisage Cell C consolidating with another player, but that the company may share infrastructure.

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