South African regulator the Independent Communications Authority of South Africa (ICASA) has confirmed that wireless operator Cell C ‘followed the correct process in the notification of its recapitalisation transaction and that it had complied with all applicable regulations’, according to a Cell C press release. Company CEO Jose Dos Santos said: ‘A recapitalised Cell C is good for the industry, the economy, and the consumer at large. The successful conclusion of this transaction has ensured a sustainable future for the company and its employees. We now have a solid foundation to really drive competition in an industry that has been marred by a duopoly at the expense of the consumer.’
As previously reported by TeleGeography’s CommsUpdate, Cell C concluded its recapitalisation – which increased the ownership of South African shareholders from 25% to 86% – in August 2017, with South Africa’s airtime provider Blue Label now holding 45% of Cell C, while 3C Telecommunications – itself owned by Oger Telecom 45.6%, the Employee Believe Trust 29.4%, and broad-based black empowerment (BBBE) grouping CellSAf 25% – is in charge of 30%, Net1 (15%) and Cell C management and staff (10%). In September 2017 ICASA launched an investigation into the process, after revealing that its preliminary view was that ‘the Cell C recapitalisation transaction – on the face of it – triggers the provisions of Section 13 of the Electronic Communications Act of 2015 and ought to have been filed as an application for change of control of the licensee.’