The JSE-listed group said in a statement to investors on Thursday that The Prepaid Company - the Blu Label subsidiary that houses its investment in Cell C - has received approval, with conditions attached, from the tribunal to increase its shareholding from a non-controlling 49.53 stake to 53.57 representing a further 4.04 stake.
- The conversion of various claims totalling R3.7-billion held by Blu Label subsidiary The Prepaid Company TPC against Cell C into Cell C equity
- The transfer of 100 of the shares in Comm Equipment Company held by TPC to Cell C in exchange for Cell C equity at a price of R2.15-billion
- The transfer of airtime with a sales value of between R7.3-billion and R7.5-billion, including VAT the exact value to be determined by TPC, from TPC to Cell C in exchange for Cell C equity
- The acquisition by TPC of the shares in Cell C held by Special Purpose Vehicles SPVs 4 and 5 in settlement of the debt obligations of those entities to TPC and
- The Cell C ListCo "flip-up", whereby Cell C shareholders will exchange their Cell C shares for Cell C ListCo shares in preparation of the future listing of Cell C ListCo.
"Blu Label will also ensure that the Cell C management team have an appropriate management incentivisation structure in place as part of the Cell C listing preparation," Blue Label said in the statement.
The Cell C listing remains subject to market conditions as well as shareholder, regulatory and other approvals, Blu Label emphasised to investors.