Buffet Consortium plans to buy a minority stake in Cell C, South Africa’s third mobile largest mobile phone operator owned by JSE-listed Blue Label Telecoms.
Blue Label Telecoms announced on Friday Cell C has concluded a ‘binding term sheet’ with The Buffet Consortium (Buffet) in terms of which Buffet shall, subject to the fulfilment of certain conditions precedent, become a minority shareholder in Cell C.
“With Buffet support the Cell C balance sheet will be bolstered and ensure Cell C’s sustainable growth for the future,” Blue Label Telecoms informed investors late on Friday.
“A further detailed announcement shall be made once the parties have executed the transaction documents required to give effect to the principles recorded in the binding term sheet.”
Buffet, underpinned by Jonathan Beare, is one of the leading private property investors in South Africa as well as an established private equity investor.
Earlier Cell C announced that Jose Dos Santos will relinquish his position as the Chief Executive Officer of Cell C, the country’s third largest mobile phone operator.
His resignation is effective 1 March 2019.
Cell C said Dos Santos will take up a role as a consultant offering strategic advice to the chairman of the Cell C board.
In this role, he will be involved in the delivery of Cell C’s strategic intent, which includes the reshaping of Cell C’s debt to ensure the company’s continued sustainability.
For more read: Cell C CEO To Step Down And Assume A Strategic Advisor Role
In 2017, Blue Label Telecoms acquired 45% of Cell C.
On August 2, 2017, controversial JSE-listed Net 1 UEPS Technologies through its subsidiary, Net1 Applied Technologies South Africa, bought 75 million shares of Cell C, a private mobile phone operator, for R 2 billion ($151.0 million) in cash.