Cell C’s long-awaited recapitalization is finally coming to an end, with the telco’s largest shareholder announcing that the process is expected to be completed by mid-September.

Blue Label Telecoms, which owns 45% of Cell C, says the “binding long-term agreements” will be fully completed in the near future.

The JSE-listed company today presented its figures for the 2022 financial year, telling shareholders that the deal had taken longer than originally expected but was now expected to close in less than a month.

This follows a recent bond process that saw Cell C’s creditors accept an offer of 20 cents for every R1 owed.

The lenders’ yes vote signaled hope for fresh funding for the debt-ridden mobile operator.

In today’s statement, Blue Label adds more details: “In terms of the settlement offer, Cell C will, inter alia, restructure its indebtedness to certain secured creditors for a total of R7.3 billion, which amount will be fixed in November 2019. , jeopardizing the claims of secured creditors with a 20 cents per rand offer.”

In terms of group results, Blue Label says gross profit increased by 548 million rand (23%) to 2.93 billion rand, corresponding to an increase in margin from 12.66% to 16.46%.

In the period, revenue grew 9% from 65.8 billion rand to 72.1 billion rand, and the company says it will continue to increase market share and strengthen its product and service mix to protect and grow its market position.

The EBITDA indicator, which shows the value of the company, increased by R107 million (8%), from R1.36 billion to R1.47 billion.

In addition, Blue Label’s total assets increased by 1.9 billion rand to 13.3 billion rand, of which non-current assets are 0.7 billion rand and current assets are 1.2 billion rand, the company said.

In addition, Blue Label informed shareholders of a 315 million rand fraud perpetrated by former senior executives.

The company first announced the bribery eight months ago, when it presented financial results for six months.

The money lost was reportedly at a subsidiary of Ventury Group, a company that oversees Blue Label entities in the prepaid market.

At the end of October 2021, Blue Label agreed and signed agreements with the criminals.

Blue Label today informed shareholders that 20.8 million rand had been collected since the end of the year from the balance outstanding at 31 May.

The company says it also had to pay professional expenses incurred during the refund, which totaled 67.9 million rand at the end of May.

“As the fraudulent activities had a direct impact on the group’s operating cash flows, the realization of recovery income is recognized in cash flows from operating activities in the statement of cash flows,” Blue Label said in a statement.

“Following a fraud investigation and a detailed review of the control environment and business processes at the subsidiary, management has made the necessary improvements regarding the existing control environment.”

Source by [author_name]