In December last year, Blue Label proposed a capital boost that will ensure a significant 35% stake in Cell C.
Apparently Cell C’s majority stakeholder, Oger Telecoms, will also buy more shares in the recapitalisation, guaranteeing it an effective stake of approximately 35% in Cell C.
3C Telecommunications, the holding company for Cell C, has dismissed the recent liquidation application by CellSAf to hamper the recapitalisation exercise, spearheaded by Blue Label Telecoms.
CellSAf executive, Solomon Mankazana, claims that CellSAF has not seen audited financial statements for 3C Telecommunications and that the group is “both financially and commercially insolvent, and unable to pay its debts.”
Mr Mankazana alleges too that 3C has been trading irresponsibly and fraudulently, with 75% of its share capital being lost, and that even after a capital injection, 3C’s liabilities will still exceed assets by more than R15bn.
The date for the Cell C recapitalisation is 1 June, and CellSAf’s application is expected to be heard in the Gauteng High Court later that month.