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Home Archive of News Cell C recapitalisation welcomed

Archive of News

Cell C recapitalisation welcomed

According to Cell C, at the close of the transaction, Blue Label Telecoms holds 45% in Cell C, 3C Telecommunications holds 30% (in turn held as 29.4% by the Employee Believe Trust, 45.6% by Oger Telecoms and 25% by broad-based black empowerment grouping CellSAf), Net1 15% and 10% on behalf of Cell C management and staff.

The ownership of the company by South African shareholders has increased from 25% to over 86% and the participation of historically disadvantaged persons in Cell C increases from around 25% to more than 30% at ownership level. This means that Cell C management and staff now have the opportunity for the first time to participate in the equity of the company. The transaction has significantly increased the South African ownership of Cell C, and further saved an estimated 2 500 direct and 15 000 indirect jobs.

The mobile operator is regulated by the Independent Communications Authority of South Africa and is therefore one of the telecommunications sector’s stakeholders. Meanwhile, the Department of Telecommunications and Postal Services said that the investment is significant because it saves Cell C and prevents the monopolisation of the telecommunications industry.

This is in line with Government’s policies, such as the National Integrated Policy, that advocate for the opening up the sector to new players, particularly to blacks and small. South Africa has partnered with the World Economic Forum Africa, the private sector and civil society to connect all citizens to the internet through a programme called the Internet For All.

Source: SAnews.gov.za



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