Blue Label cautions of further Cell C funding delays
Cell C’s recapitalisation remains in balance as “certain delays” have resulted in the transaction discussions being prolonged, and a deal is now expected to close towards the end of August.
Blue Label Telecoms, the telco’s biggest shareholder, informed shareholders today of the delays, but says the refinancing is on track.
Cell C recently launched a bond process in the latest step towards recapitalisation and is seeking majority support from its debtors.
The bond-holders were required to legally indicate their consent to the offer – of 20c for every R1 of debt – by means of a vote.
Subsequently, the lenders voted in favour, signalling hope for fresh funding for the debt-saddled mobile operator.
The move marked a critical milestone in the financial restructuring and recapitalisation of the telco, which has been waiting for recapitalisation for some time.
Today, Blue Label announced: “Shareholders are referred to the SENS announcement of 5 July 2022, which referred to the anticipated date of completion of the Cell C recapitalisation process.
“Certain of the binding long-form agreements are not yet in final execution form and are in the process of finalisation.
“Although the final stages of the recapitalisation process are progressing well, certain delays have resulted in the transaction being expected to close towards the end of August 2022.”