Cell C May List On The Jse As Blue Label Eyes Big Restructuring

• Airtime asset transfer: The Prepaid Company TPC, a wholly owned subsidiary of Blue Label that holds shares and debt claims in Cell C, will transfer Cell C airtime currently held by TPC on its balance sheet to Cell C in exchange for newly issued additional equity in Cell C.
• Debt-to-equity conversion: TPC's outstanding debt claims against Cell C will be capitalised and converted into equity, further reducing Cell Cs leverage.
• Acquisition of Comm Equipment Company CEC: Cell C will acquire 100 of CEC a wholly owned subsidiary of Blue Label from TPC in exchange for additional Cell C shares. CEC is a subsidiary responsible for Cell Cs postpaid offerings. "The internalisation will enable Cell C to assume full responsibility over its post-paid customer base, including oversight of supply chain, commercial operations, marketing, billing, credit and collections."
• SPV restructure: The special purpose vehicles SPVs currently holding equity interests in Cell C will also be restructured as part of the broader initiative, aligning their ownership structures with the redefined capital framework.

"Overall, the restructure is intended to streamline operations, improve financial sustainability and enhance Cell C's strategic readiness for long-term growth and potential listing," Blue Label said.

Blue Label is also in the process of seeking regulatory approval from the Competition Commission to increase its stake in Cell C from a non-controlling 49.5 to 53.5. - 2025 NewsCentral Media

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