Cell C’s massive problem it has no control over

Regarding profitability... Where is the correct quote that goes along the lines of "we are profitable on a month to month basis"?
 
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If Telkom or any company buys Cell C does that mean they'll take over the R14bn debt? or the debt will be taken care of by the R22bn the shareholder wants?
 
WHat ideally would have happened is:

Telkom values the company at lets say 16 Billion, Cell-c has debt of 14 Billion.

Telkom "pays" 16 Billion over to Cellc - but 14 billion of that goes straight to debt. Cell - c walk away with 2 billion. SO the actual "worth" of Cell c less debt is 2 billion...

I could be wrong - but thats the way i see it.
 
Thread title, heading and article title: "Cell C's massive problem it has no control over"

Over what? Debt? The weak rand?
 
Antybubbs said:
WHat ideally would have happened is:

Telkom values the company at lets say 16 Billion, Cell-c has debt of 14 Billion.

Telkom "pays" 16 Billion over to Cellc - but 14 billion of that goes straight to debt. Cell - c walk away with 2 billion. SO the actual "worth" of Cell c less debt is 2 billion...

I could be wrong - but thats the way i see it.
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If so Telkom can buy Cell C with the debt, lets say of the R22bn wanted they can - / minus R14bn and pay the remainder which would be R8bn and renegotiate the debt as Telkom and maybe get favorable interest based on credit rating of Telkom.
 
Dlamaqhinga said:
If Telkom or any company buys Cell C does that mean they'll take over the R14bn debt? or the debt will be taken care of by the R22bn the shareholder wants?
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It depends on how the deal is structured. In the simplest sense, Telkom would buy all of Cell C, assets and liabilities. Telkom would offer a price that takes into account the debt though. This would lower the price that Telkom is willing to pay for Cell C's assets.
 
Dlamaqhinga said:
If Telkom or any company buys Cell C does that mean they'll take over the R14bn debt? or the debt will be taken care of by the R22bn the shareholder wants?
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The only part of CellC up for sale is Olga's share which is 75%.
Therefore the debt is held by CellC, Olga may well be a creditor, so depends how the debt is structured which is not public knowledge. Sounds like Telkom offered less than the asking price.
 
qwertydudeza said:
The only part of CellC up for sale is Olga's share which is 75%.
Therefore the debt is held by CellC, Olga may well be a creditor, so depends how the debt is structured which is not public knowledge. Sounds like Telkom offered less than the asking price.
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But Telkom wanted 100% of Cell C not just the 75% held by Olger.
 
qwertydudeza said:
The only part of CellC up for sale is Olga's share which is 75%.
Therefore the debt is held by CellC, Olga may well be a creditor, so depends how the debt is structured which is not public knowledge. Sounds like Telkom offered less than the asking price.
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Olga? *S******s*
 
Cell C is broken inside, no surprise even Telkom would have seen it.
 
Its the same story for Edgars

They were also purchased using foreign debt. Which they now cant pay.
 
Massive massive massive.

However, media reports stated that Cell C was struggling to manage its debt, which is reported to sit at R14 billion.
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About 3 Zuma jets's worth. Just shows how much that guys is a waste for this country
 
Article doesn't give a lot of info. What don't they have control over? Having debt? The rand? Having to repay it in foreign currency?
 
Surely you can hedge against forex though, even partially.

If the foreign currency denominated debt is so material, it's a huge risk that it isn't mitigated to some extent.
 
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