Blue Label Telecoms and Net1 have recently said they value Cell C at nil (R0.00), but the mobile operator remains upbeat about its future.
Net1 said Blue Label is impairing its Cell C investments to nil for the year ended 31 May 2019, adding that it believes the fair value of Cell C at 30 June 2019 is also nil.
Blue Label is the largest shareholder in Cell C with a 45% stake in the company, while Net1 owns 15% of the mobile operator.
“The decisions of Net1 and Blue Label to write down the value of their respective equity holdings do not impact Cell C’s operations,” said Net1 CEO Herman Kotze.
Cell C has good long-term prospects
Net1 said it fully supports Cell C’s a comprehensive restructuring plan, adding that there have been several positive developments in this process since the end of June.
Kotze said they believe that Cell C’s long-term prospects will significantly improve once it has been recapitalized.
This sentiment is echoed by Cell C CFO Zaf Mahomed, who said they remain focussed on optimising the business, managing the liquidity, and restructuring the balance sheet.
“We are comfortable with our progress on all three fronts. We are also pleased with the improved performance in recent months,” he added.
Mahomed said they plan to update the market when Cell C releases its results within the next two weeks.