Blue Label Telecoms’ board of directors has signed the final equity transaction agreements to the recapitalisation of Cell C.
“Blue Label anticipates issuing an updated circular, and convening a general meeting before the end of July 2017 in order to seek the approval of shareholders for the amendments to the Cell C recapitalisation,” it said.
“Blue Label has obtained irrevocable undertakings from approximately 53% of shareholders to vote in favour of the Cell C recapitalisation, including the vendor consideration placement of R2.75 billion.”
The company said the amended agreements include:
- Net borrowings of Cell C to be reduced to a maximum of R6.0 billion (previously R8.0 billion).
- An increase in the Blue Label vendor consideration placement from R2.0 billion to R2.75 billion, at a price of R15.00 per Blue Label share.
- The Prepaid Company Proprietary Limited’s subscription remains unchanged at 45% of Cell C for a subscription price of R5.5 billion.
- The Prepaid Company has agreed to provide liquidity support, to the extent required, in the form of interest bearing subordinated loans of up to $60 million to a special purpose vehicle set up to hold shares in Cell C.
“The Cell C recapitalisation is anticipated to be implemented during the first week of August 2017 as it is subject to Blue Label shareholder approval.”