Copying and distributing are prohibited without permission of the publisher 22 July 2013
Parent company puts $356m into South African operator and arranges $224m loan as Cell C denies problems
Read more: Cell C South Africa Oger Vodacom MTN Nedbank T?rk Telekom
Oger Telecom, the main shareholder in Cell C, South Africa?s smallest operator, has taken a further 3.5 billion rand ($356 million) of equity in the company, which has also arranged a loan of 2.2 billion rand ($224 million).
Cell C has an estimated 16% of a market dominated by two South African giants, Vodafone-controlled Vodacom, which has expanded into sub-Saharan Africa, and MTN which has businesses in Africa and the Middle East.
Robert Pasley, acting CFO of Cell C, told South Africa?s Business Day Live that the have the new bank debt is to refinance existing debt and that the company is not in trouble. The debt is from Nedbank, the Development Bank of South Africa and other banks.
?The investment has been put into the business because our investors have confidence in the business plan and Nedbank, DBSA and some of our other suppliers also have confidence in the business plan,? Pasley told Business Day Live.
Cell C?s main shareholder is Oger Telecom, backed by two Saudi Arabian shareholders, telecoms operator STC and Saudi Oger, a large industrial group with interests from IT to construction. Oger Telecom owns 55% of Turkish incumbent T?rk Telekom, which in turn controls Turkish mobile company Avea.
Cell C?s CEO Alan Knott-Craig founded rival Vodacom but joined the rival company in April 2012. At the time he said that he wanted a 25% share of the South African market.
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