- \n
- The Cell C board established a committee to monitor the operator\u2019s liquidity and avoid reckless trading during the recapitalisation and debt restructure negotiations.<\/li>\n<\/ul>\n
- \n
- Cell C and its shareholders appointed advisers to assist in Cell C\u2019s liquidity monitoring and designing revised business plans that support the new operating business model.<\/li>\n<\/ul>\n
- \n
- Cell C signed a roaming agreement with Vodacom in November 2020 to manage more scalable and cost-efficient capacity.<\/li>\n<\/ul>\n
- \n
- Cell C embarked on a strategy to reconsider its current service offering. It identified the need to either wind down or restructure the service offering provided to its postpaid mobile base.<\/li>\n<\/ul>\n
- \n
- Cell C started defaulting on its bond and loan facilities in 2020. However, Blue Label said it had considered the default and believes Cell C\u2019s going concern assumption is still applicable.<\/li>\n<\/ul>\n
- \n
- Blue Label and Cell C developed a turnaround strategy and recapitalisation programme, which included suspending debt payments, cutting costs, reducing staff, and removing non-profitable products from its portfolio.<\/li>\n<\/ul>\n
To conclude the recapitalisation transaction, Blue Label, through The Prepaid Company (TPC), will lend Cell C R1.03 billion to pay the \u201c20c to the rand\u201d claims from secured lenders.<\/p>\n
TPC will also purchase R2.4 billion in prepaid airtime from Cell C and buy certain minimum levels of prepaid airtime from Cell C per an agreed monthly schedule.<\/p>\n
Qualified audit opinion about Cell C\u2019s going concern assumption<\/strong><\/h3>\n
PricewaterhouseCoopers (PwC) said its audit report for Blue Label from last year contained a qualified audit opinion.<\/p>\n
That qualification arose due to its inability to obtain sufficient and appropriate audit evidence to support the going concern assumption at Cell C.<\/p>\n
\u201cThe restructuring of the operations and capital structure of Cell C is still in progress, and the outcome thereof remains uncertain as of the date of this audit report [25 August 2022],\u201d it said.<\/p>\n
\u201cAs a result, we are still unable to obtain sufficient and appropriate audit evidence to support the going concern assumption for Cell C.\u201d<\/p>\n
It explained that the assets and liabilities of Cell C might be impaired, measured at fair value rather than cost, or written off entirely, depending on how Cell C plans to recover or settle these assets and liabilities.<\/p>\n
The possible effect on the consolidated financial statements would be that the disclosure of the summary financial information of Cell C may require material adjustment.<\/p>\n
In simple terms, PwC could not find sufficient audit evidence to make the assumption that Cell C would continue operating in the foreseeable future.<\/p>\n
Daily Investor asked Blue Label for details about the qualified audit opinion, but it referred all questions to Cell C.<\/p>\n
Cell C did not respond to the question by the time of publication.<\/p>\n
Cell C results release date postponed<\/strong><\/h3>\n
![\"Douglas](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2020\/10\/Douglas-Craigie-Stevenson.jpg\")
<\/a>Douglas Craigie Stevenson, Cell C CEO<\/p><\/div>\n
Cell C was set to present its annual results for the 2021 financial year and the interim results for the six months ended 30 June 2022 on Wednesday, 13 September.<\/p>\n
An investor roadshow would have followed the results announcement.<\/p>\n
However, on Tuesday, 12 September, Blue Label said the market update was postponed due to Cell C CEO Douglas Craigie Stevenson\u2019s ill health.<\/p>\n
It said Craigie Stevenson had been diagnosed with an upper respiratory tract infection, so the results update and investor roadshow have been postponed.<\/p>\n
It is not clear why Cell C\u2019s new CFO, Lerato Pule, who was appointed at the beginning of September, could not take over from Craigie Stevenson.<\/p>\n
Pule replaced former Cell C CFO Zaf Mahomed, who left the company two weeks before their financial results release date.<\/p>\n
Mahomed was a core part of the executive team who drove the company\u2019s restructuring and turnaround plan.<\/p>\n
Cell C said Mahomed left the company to pursue new opportunities.<\/p>\n
Blue Label said new dates would be communicated to the market in due course.<\/p>\n
\nBy Drikus Greyling for Daily Investor<\/strong><\/em><\/a>, republished with permission.<\/p>\n
Now read:\u00a0Goodbye Cell C headquarters walk-in customer care centre<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"
PricewaterhouseCoopers has expressed a qualified audit opinion on Blue Label’s financial results related to Cell C.<\/p>\n","protected":false},"author":341108,"featured_media":460938,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[80335],"tags":[1017,4064,355,35,19969,23265],"class_list":["post-460936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-blue-label-telecoms","tag-brett-levy","tag-cell-c","tag-headline","tag-mark-levy","tag-pricewaterhousecoopers-pwc"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/460936"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341108"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=460936"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/460936\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/460938"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=460936"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=460936"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=460936"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
- Blue Label and Cell C developed a turnaround strategy and recapitalisation programme, which included suspending debt payments, cutting costs, reducing staff, and removing non-profitable products from its portfolio.<\/li>\n<\/ul>\n
- Cell C started defaulting on its bond and loan facilities in 2020. However, Blue Label said it had considered the default and believes Cell C\u2019s going concern assumption is still applicable.<\/li>\n<\/ul>\n
- Cell C embarked on a strategy to reconsider its current service offering. It identified the need to either wind down or restructure the service offering provided to its postpaid mobile base.<\/li>\n<\/ul>\n
- Cell C signed a roaming agreement with Vodacom in November 2020 to manage more scalable and cost-efficient capacity.<\/li>\n<\/ul>\n
- Cell C and its shareholders appointed advisers to assist in Cell C\u2019s liquidity monitoring and designing revised business plans that support the new operating business model.<\/li>\n<\/ul>\n