Cell C is preparing to list on the Johannesburg Stock Exchange (JSE) in the next three to four years. This is according to a report in the Sunday Times that quoted CEO, Jose Dos Santos, saying the telco would use the next three years to position the company strongly 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 there is an appetite to buy Cell C from a customer and listing perspective," the newspaper quoted him saying.
Cell C's rivals Vodacom, MTN and Telkom are all already listed on the JSE's main board.
The Public Investment Corporation (PIC) told the newspaper it would consider investing in Cell C if it decided to go ahead with a listing. The PIC already owns over 15% of Vodacom and almost 17% of MTN via the Government Employees Pension Fund.
South Africa's third largest mobile network has already taken action to restructure through a recapitalisation strategy which includes Blue Label Telecoms buying a large chunk of Cell C.
In December, Cell C announced plans to recapitalise the company that would see net debt reduced to R8 billion or less when implemented. The restructuring also includes a R4 billion capital injection from Blue Label, in return for a 35% stake in the mobile operator.
The Cell C management and staff will invest R2.5 billion for 30% of the total issued shares in Cell C, while current shareholder 3C Telecommunications will also subscribe for a number of shares to hold about 35% of the company at the close of the recapitalisation.
Dos Santos told the Sunday Times that with the planned recapitalisation and lower debt levels: "there's no telling what we can do in the next three years".
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