Deals
Cell C Seeking 73% Debt Reduction in Blue Label Buyout Deal
- South African phone company in talks to refinance borrowings
- Will be able to keep mobile license if no change of ownership
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Cell C Pty Ltd. is seeking to cut its debt by 73 percent as part of a deal that will help South Africa’s third-largest mobile-phone operator sell a stake to Blue Label Telecoms Ltd. while retaining its operating license, according to two people familiar with the matter.
The proposed transaction will see Cell C split about 9 billion rand ($688 million) of borrowings into three special purpose vehicles, said the people, who asked not to be identified because the talks are private. Alongside stake sales to Blue Label and payment services provider Net1 UEPS Technologies Inc., the plan will cut the overall debt to 6 billion rand from about 22 billion rand, they said.