Net1 UEPS Technologies is confident it will conclude its intended acquisition of a 15% stake in Cell C for R2 billion "in a couple of weeks", said company CEO Herman Kotz'e.
He noted that although they look to conclude the deal in the next couple of weeks, the process is not an exact science.
"There are many parties involved, especially from the previous funders of the business, and the number of agreements that are currently being drafted - I think there are currently more than 80. It is quite a process to project manage the various agreements and the relationships with each one of the creditors, bond holders and the new equity investors.
"The process is on track, as far as I'm concerned, and I think most of the hard work has been done. It's just a matter of making sure that everybody is happy and that we execute with regards to the agreements."
Net1 announced yesterday it will no longer invest R2 billion in Blue Label Telecoms, but will continue to pursue its acquisition in mobile operator Cell C.
The company confirmed in March it is a third party investor to an umbrella restructure agreement with Cell C and Blue Label. At the time, Blue Label, Net1, Cell C and the debt providers of Cell C entered into a binding umbrella restructure agreement, which also included Blue Label acquiring a 45% stake in Cell C for R5.5 billion.
In a SENS statement, Net1 said it and Blue Label "have mutually agreed that Net1 SA will not subscribe for shares in Blue Label, and the subscription agreement has therefore been terminated".
Kotz'e confirmed the two companies reached a joint decision and concluded it would be better not to make the direct investment into Blu Label, but continue with the Cell C investment.
He explained: "We started with this transaction last year in October and, back then, things were a lot different in terms of our share price and Blu Label's share price. We agreed specifically on specific parameters and, unfortunately, over the last couple of months, things have evolved to a point where those parameters simply became unworkable. We discussed this with Blu and they understood - they are in the same position.
"They [Blue Label] will continue with their Cell C investment, so we will still be partners in a way, but we won't have an indirect shareholding through Blu Label, but directly into Cell C."
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