MickeyD
RIP
This article refers: http://businesstech.co.za/news/columns/114738/cell-c-cheers-vodacom-loss-on-neotel-spectrum/
Has Cell C started celebrating too early?
During the court proceedings Cell C were the party pushing the 30% BBBEE ownership as a means to scupper the Vodacom-Neotel deal.
And the High Court obliged by using it as one of the reasons to stop the deal.
Now we have an interesting situation arising this week with Neotel challenging just this portion of the judgement, and for very good reason.
If the judgement is not challenged, it could put the cat among the pigeons on many deals and proposed deals.
The Telkom-BCX acquisition is the first one that springs to mind. Even though Telkom are not after BCX's licenses and there is no spectrum involved, Telkom does not meet the 30% ownership requirement. So even with Competition Commission and Competition Tribunal approval, the deal will have to be approved by ICASA as well. Telkom/BCX showed them the middle finger and said that their approval is not required. Oops... this ruling says otherwise.
Now let's examine Cell C's BBBEE ownership. Oops... I'm sure Oger will not be amused!
Then we get MTN's purchase of Afrihost. Oops... Houston, we have a problem.
And there are a few more.
This makes the Neotel application very, very interesting!!
Has Cell C started celebrating too early?
During the court proceedings Cell C were the party pushing the 30% BBBEE ownership as a means to scupper the Vodacom-Neotel deal.
And the High Court obliged by using it as one of the reasons to stop the deal.
Now we have an interesting situation arising this week with Neotel challenging just this portion of the judgement, and for very good reason.
If the judgement is not challenged, it could put the cat among the pigeons on many deals and proposed deals.
The Telkom-BCX acquisition is the first one that springs to mind. Even though Telkom are not after BCX's licenses and there is no spectrum involved, Telkom does not meet the 30% ownership requirement. So even with Competition Commission and Competition Tribunal approval, the deal will have to be approved by ICASA as well. Telkom/BCX showed them the middle finger and said that their approval is not required. Oops... this ruling says otherwise.
Now let's examine Cell C's BBBEE ownership. Oops... I'm sure Oger will not be amused!
Then we get MTN's purchase of Afrihost. Oops... Houston, we have a problem.
And there are a few more.
This makes the Neotel application very, very interesting!!
Walls o'text