Cell C has labelled a new media statement by CellSAf as “another in a long list of baseless accusations”.
Cell C chief legal officer Graham Mackinnon said the statement is aimed at discrediting Cell C, and “misquoted Cell C’s submission and oral representations to ICASA in response to the regulator’s plans to promote BBBEE”.
CellSAf stated that during the hearings, “potentially fatal flaws, if not possible regulatory breaches” by Blue Label Telecoms Limited and Net 1 were revealed in their recapitalisation transaction involving Cell C.
CellSAf added that Cell C allegedly stated the Competition Commission’s current view is that there has been an acquisition of control in Cell C by Blue Label Telecoms.
“Cell C’s presentation was exceptionally positive and well-received by the regulator. It is astounding that CellSAf is now ascribing its own distorted meaning to Cell C’s presentation on this matter,” said Mackinnon.
“In terms of CellSAf’s statements regarding control, the Competition Commission has not made a finding regarding the acquisition of control of Cell C by any party, including Blue Label Telecoms.”
There was also reference to a recent downgrade of Cell C by Standard & Poor’s and its potential links to the performance of Cell C.
“The S&P statement regarding the downgrade in fact acknowledged the positive performance of Cell C,” said Mackinnon.
“CellSAf’s latest claims are in keeping with the litany of untruths and distortions that it has made over the years.”
The statements from the companies come after CellSAf set on a course to oppose the deal between Cell C and Blue Label Telecoms before it was completed.
CellSaf called the recapitalisation deal “the most blatant attempt at corporate hijacking in recent history”.
Blue Label completed the recapitalisation of Cell C in August 2017, making it a 45% shareholder of the operator through subsidiary The Prepaid Company.