Although this is Cell C\u2019s last chance, Mendes said they have a good opportunity to carve a niche for themselves in the South African telecommunications market.<\/p>\n\n\n\n
He admitted that Cell C was highly distressed when he joined the company in July 2023 after 24 years at Vodacom.<\/p>\n\n\n\n
\u201cWhen I looked at the headlines and saw Cell C from the outside, it looked chaotic, problematic, and financially distressed. There were questions of whether it would survive,\u201d he said.<\/p>\n\n\n\n
\u201cThe very things I noticed from the outside looking in turned out to be exactly right. The only difference is that it was deeper and wider in terms of the magnitude.\u201d<\/p>\n\n\n\n
He highlighted that Cell C had been recapitalised a few times. \u201cAround R44 billion has been wiped out<\/strong>,\u201d he said.<\/p>\n\n\n\n Mendes said over 99% of companies in Cell C\u2019s position close their doors. \u201cA small fraction survives and becomes unbelievable businesses. I believe that is where we are,\u201d he said.<\/p>\n\n\n\n Cell C\u2019s ICASA submission pointed to the exceptional support the company has received from Blue Label and The Prepaid Company (TPC).<\/p>\n\n\n\n It has injected R5.5 billion into Cell C, settled creditors\u2019 claims, loaned Cell C R1.03 billion and currently holds Cell C airtime and data stock of over R2.5 billion.<\/p>\n\n\n\n Blue Label Telecoms\u2019 subsidiaries have made financial contributions in excess of R14.4 billion to Cell C.<\/p>\n\n\n\n \u201cIn this way, TPC and Blue Label have a vested interest in improving Cell C\u2019s financial viability and significant exposure,\u201d Cell C said.<\/p>\n\n\n\n Cell C has several shareholders and is not controlled by any of them. It said this dispersed shareholding had inhibited Cell C\u2019s ability to improve its financial position.<\/p>\n\n\n\n The mobile operator said it lacked the necessary direction that would come with having a single controlling shareholder.<\/p>\n\n\n\n \u201cIn this context, TPC seeks to acquire additional shares in Cell C, thereby increasing its shareholding from a non-controlling 49.53% to a controlling 53.57%,\u201d it said.<\/p>\n\n\n\n Cell C said it does not have funding from any other shareholder, investor or financial institution as they are unwilling to inject further funding into Cell C.<\/p>\n\n\n\n \u201cNo other entity is willing to provide Cell C \u2013 which is technically insolvent \u2013 with any form of financial assistance,\u201d the mobile operator said.<\/p>\n\n\n\n \u201cThe proposed transaction is the only means available to Cell C to secure its continued operation and facilitate its financial recovery.\u201d<\/p>\n\n\n\n![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2024\/09\/jorge-mendes-at-Icasa-hearing.jpg\")
Mendes said they have had exceptional partners along this journey, who have helped Cell C stay alive and ensure its place in South Africa.<\/p>\n\n\n\n
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