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TechInAfrica — Cell C, SA’s third-biggest telecom company, is putting its core assets up on sale in a bid. The company made this decision to solve its debt and losses issues. Cell C wants to sell its fiber-optic network, customer base and some of its wireless frequencies to cover a $596 million debt, according to Bloomberg. This news attracted the interest of Cell C’s SA rivals such as MTN, Vodacom, and Telkom. These companies have larger opportunity to expand their revenue and customer base.
However, there is a disagreement between the government and the telecommunications regulator about how to proceed with the auction. Therefore, the disagreement has delayed it to the first quarter of 2021 at the earliest. Cell C’s asset sale is also attracting the interest of the world’s biggest telecom company, China Mobile, according to a report. It was also said that the Chinese firm plans to acquire the company altogether.
“Cell C will look at any opportunity that will assist with the company’s long-term viability and sustainability. Any opportunity needs to undergo a due diligence process that takes into account all stakeholders,” said a spokesperson.
The domination of Vodacom and MTN in the local telecoms market in Africa has disrupted the business of smaller rivals such as Cell C, which has nearly come to collapse on previous occasions. In 2016, the company was rescued by a funding plan led by Blue Label Telecoms. CEO Douglas Craigie Stevenson said in September that Cell C is also in talks with MTN about gaining more access to the latter’s network.
Telecoms operators are looking at scaling up their fiber offerings and customer base to increase revenue in the absence of a much-delayed state sale of new spectrum, which will increase the availability of high-speed internet.
The Blue Label shares now have decreased to 47% in 2019, and the group is now valued at $175.7 million.
Source: businesslive.co.za
