Cell C rubbishes BEE partner accusations

3 March 2017

Mergers, Acquisitions and Financial Results

The Cell C-Blue Label deal is going ahead despite its BEE partner's grievances.

Cell C has hit back at black empowerment partner CellSAf, saying accusations levelled against the Cell C board are "baseless".

This after CellSAf, which currently owns 25% of Cell C, issued a statement saying it "remains resolutely opposed to the so-called recapitalisation of Cell C" through which Blue Label will acquire 45% of the company for R5.5 billion and threatened to take Cell C to court if the deal goes ahead tomorrow.

CellSAf claimed the board of Cell C "has not consulted with CellSAf nor has it provided an opportunity for this shareholder to raise concerns related to this transaction with the company's management and board".

The board has now responded, saying that throughout the deal's process it has consistently followed lawful and good governance practices.

Read the full article on ITWeb here

Source: ITWeb 27 February 2017