Cell C aims for R7.7 billion JSE listing to enhance growth and transparency

Market source indicates that listing could be imminent, subject to market conditions and approval

- EDWARD WEST

WELL known South African cellphone company Cell C plans to raise about R7.7 billion through a listing on the main board of the JSE, this after a long period of restructuring.

Although a date was not yet disclosed, a market source indicates the listing may be “imminent” The company, the fourth largest mobile operator in the country, announced on Wednesday that it plans to list by way of an offer of shares by The Prepaid Company (TPC), an owned subsidiary of JSE-listed telecoms group BLU Label, by way of a private placement to qualified investors, subject to market conditions and to JSE approval.

The R7.7bn would include an over-allotment option of R500 million and an allocation of up to R2.4bn to a black economic empowerment vehicle - telecom regulations require the company to maintain a 30% shareholding by historically disadvantaged persons, and TPC are taking steps to ensure the requisite B-BBEE ownership structure is in place at the listing. BLU’s existing empowerment credentials are achieved through a broader B-BBEE ownership structure, rather than a single anchor partner.

Cell C will not receive any proceeds from the share sale. To help the process, a restructuring ahead of the listing will see Cell C separate from BLU.