The proposed acquisition forms part of a significant restructuring at Cell C, which will result in the company’s debt being reduced by more than half and all employees being given a stake in the business.
Blue Label intends using a mix of cash and new debt to pay for the stake. Although the R4-billion injection implies a valuation of Cell C of just R11.4-billion – far less than the R22-billion parent Oger Telecom was reportedly seeking from Telkom – a spokesman for the operator said the figure represented Blue Label’s share of the equity value in Cell C and did not include the debt value. The restructuring plan has placed an enterprise value on the business of about R19-billion.
Controlling shareholder Oger Telecom has promised to inject…
Read the full article at: http://www.timeslive.co.za/sundaytimes/businesstimes/2015/12/13/Blue-Labels-R4bn-bid-to-help-lighten-Cell-C-debt