Cell C’s JSE Listing Boosts South Africa’s Inclusive Economy

Cell C’s JSE Debut Advances Black Economic Empowerment in Telecoms

Cell C Holdings, a prominent South African telecommunications and technology group, is poised to debut on the Johannesburg Stock Exchange (JSE). A pivotal element of this listing is the creation of a Broad-Based Black Economic Empowerment Special Purpose Vehicle (BEE SPV), fully financed by The Prepaid Company (TPC), to secure a substantial stake in the company. This acquisition is part of a wider initiative to ensure at least 30% ownership by Historically Disadvantaged Persons (HDPs) at the time of listing.

The BEE SPV, with a six-year lock-up period, will acquire between 5% and 20% of Cell C Holdings shares. Valued between R2.0 billion and R2.4 billion, this acquisition will not dilute existing shareholders and is structured to maintain sustainable HDP ownership levels post-listing. The BEE SPV comprises fully B-BBEE owned entities with credible track records and long-standing partnerships with Blu Label, ensuring Cell C Holdings' B-BBEE compliance and promoting inclusive economic participation.

The transaction is facilitated by Rand Merchant Bank, with Investec Bank serving as financial adviser to Blu Label and Werksmans Attorneys Inc. acting as legal adviser to both Blu Label and TPC. DLA Piper Advisory Services is the legal adviser to Cell C. Cell C Holdings, with a diversified business model encompassing retail, wholesale, and mobile virtual network operations, has bolstered its executive management team and returned to a growth trajectory over the past two years.

The listing of Cell C Holdings on the JSE, accompanied by the BEE SPV acquisition, signifies a substantial stride towards broader black economic empowerment in the South African telecommunications sector. This move is anticipated to fortify inclusive economic participation and uphold Cell C Holdings' B-BBEE compliance.