Negotiations are taking place between Cell C and China Mobile, with a deal between the two mobile operators imminent.
This is according to a report by ITWeb which stated that Cell C CEO Douglas Craigie Stevenson is open to discussions which will “assist the company’s future viability”.
Responding to questions from MyBroadband, Cell C said it cannot comment on behalf of China Mobile.
“Cell C will keep the door open to any conversations that will assist the company’s future viability,” the company told MyBroadband.
Cell C struggling financially
Cell C has been struggling financially, and two of its largest shareholders – Blue Label Telecoms and Net1 – recently impaired their investments in the operator to 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.
Despite the mobile operator’s current financial challenges, Blue Label Telecoms co-CEO Brett Levy said Cell C has a bright future.
Levy said that Cell C had experienced many positive changes over the last few months, adding that the company’s turnaround strategy was progressing well.
“The deals we are working on have progressed tremendously. There is a great future for Cell C,” Levy said.
Cell C has good long-term prospects – Net 1
Net1 echoed Levy’s views, saying it fully supports Cell C’s comprehensive restructuring plan and that there have been several positive developments in this process since the end of June.
Net1 CEO Herman Kotze said he believes that Cell C’s long-term prospects will significantly improve once it has been recapitalized.
Cell C CFO Zaf Mahomed added that the company remains focused 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.