ICASA warns of possible ‘non-compliance’ regarding Cell C recapitalisation

8 September 2017

Mergers, Acquisitions and Financial Results

South African regulator the Independent Communications Authority of South Africa (ICASA) has confirmed that it had received a notification from Cell C regarding its recent change of ownership, though its preliminary view is 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.’ The authority is engaging Cell C ‘to seek clarity on this apparent non-compliance with the legislative provisions’, while also taking external legal advice on the matter, including what appropriate enforcement actions it can take to ensure compliance.