CellSAf objects to Cell C licence control transfer

[Jan]

Cell C shareholder opposes licence control transfer

CellSAf, one of Cell C’s oldest shareholders, has objected to the mobile operator’s plan to transfer control of its licenses to Blue Label’s The Prepaid Company.

The objection followed Cell C’s plan to transfer control of its Electronic Communications and spectrum licences to Blue Label’s The Prepaid Company.

 

[nicroets]

Disagreement between controlling shareholder and minorites? That's very very common throughout the world. Minorites have been little power in the corporate world.

The real issue here is that the liabilities of Cell C exceed the assets (according to the accountants). Surely those liabilities are loans. But from who ? How do those lenders feel about Cell C being "hollowed out" ?

In insolvency, there are laws protecting lenders. (Minority) shareholders are usually left with nothing.