Cell C's shareholder challenges Blue Label-led recapitalization plan

Source : REUTERS
Last Updated: Thu, Nov 24, 2016 16:21 hrs

JOHANNESBURG (Reuters) - South Africa's Cell C's shareholder CellSAF launched a court challenge against Blue Label Telecoms led recapitalization plan and wants the transaction to be set aside, according to court papers seen by Reuters on Thursday.

CellSAF said in the court papers that it was not informed of the deal or given the opportunity to comment on it or consider the various documents on the transaction before it went ahead.

CellSAF holds a 25 percent stake in a firm that owns Cell C, the third-largest mobile phone operator.

Blue Label, the largest distributor of pre-paid airtime and data in South Africa, said in October it will pay 5.5 billion rand ($400 million) for a 45 percent stake in debt-laden mobile firm Cell C Ltd.

(Reporting by Nqobile Dludla and Tiisetso Motsoeneng; Editing by James Macharia)



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