Latest news with #CellC
The Citizen
16-05-2025
- Business
- The Citizen
Is Cell C using Pick n Pay/Boxer's strategy? Broke mobile network plans to list on JSE
As of February 2025, Blue Label's financial results revealed that Cell C remains technically insolvent, with its liabilities continuing to exceed its assets — a condition that has persisted since shortly after 2019. Blue Label acquired 45% of Cell C in 2017. Pictures: Blue Label and Cell C Facebook pages Blue Label, parent company to Cell C is looking at restructuring the business, which will allow a separation and potential future listing of struggling mobile network, Cell C on the Johannesburg Stock Exchange (JSE). According to reports, Cell C's financial woes began around 2015, when it was unable to make a profit despite reselling airtime. It was during a restructuring process that created three special purpose vehicles to restore Cell C's debt, following Blue Label's acquisition of a 45% stake. Mobile network still technically insolvent The company's financial challenges intensified, and it began a restructuring process that included a recapitalisation in 2022 to reduce debt. In early 2021, Cell C began migrating its customers to roam on partner networks, specifically MTN and Vodacom, and deactivated its physical towers and RAN in June 2023. Blue Label's financial results in February 2025 showed that Cell C is still technically insolvent, meaning its liabilities exceeded its assets, which has been an issue since 2019. The financial results showed that the mobile network had a negative equity of -R3.3 billion. Negative equity means that a company will not be able to settle all of its liabilities with its assets if it is liquidated. Analysts warned Blue Label that acquiring a stake in Cell C is not a very good idea, because the South African telecommunications market is dominated by Vodacom and MTN. Plans to list the mobile network Blue Label's Stock Exchange News Service (SENS), said, 'the proposed restructuring is expected to encompass various ancillary transactions, aimed at optimising Cell C's capital structure and balance sheet in preparation for a potential separation and future listing on the JSE. 'Should Blue Label elect to implement the proposed restructuring, it is envisaged that the various restructuring steps will be inter-conditional and contingent upon the potential listing of Cell C. 'The implementation of the restructuring and potential listing will remain subject to, among other conditions, approval by the boards of Blue Label and Cell C, requisite shareholder and regulatory consents, and favourable market conditions.' How the restructuring will work • 'Airtime asset transfer: The Prepaid Company Proprietary Limited ('TPC'), a wholly owned subsidiary of Blue Label which holds shares and debt claims in Cell C, will transfer Cell C airtime currently held by TPC on its balance sheet to Cell C in exchange for newly issued additional equity in Cell C. • 'Debt-to-equity conversion: TPC's outstanding debt claims against Cell C will be capitalised and converted into equity, further reducing Cell C's leverage. •' Acquisition of Comm Equipment Company Proprietary Limited ('CEC'): Cell C will acquire 100% of CEC (a wholly owned subsidiary of Blue Label) from TPC in exchange for additional Cell C shares. CEC is a subsidiary responsible for Cell C's postpaid offerings. The internalisation will enable Cell C to assume full responsibility over its postpaid customer base, including oversight of supply chain, commercial operations, marketing, billing, credit, and collections. • 'SPV restructure: The Special Purpose Vehicles (SPVs) currently holding equity interests in Cell C will also be restructured as part of the broader initiative, aligning their ownership structures with the redefined capital framework.' ALSO READ: Cell C has suspended 400 workers, but it's not about race, says ICTU How does listing make money? According to the JSE, listing a company primarily benefits the company by enabling it to raise capital through public share offerings. This capital can then be used for various purposes, such as expansion, debt repayment, research and development, or gaining a competitive advantage. 'Well-established companies seeking equity funding to grow their business list on the Main Board. Almost a fifth of the Main Board companies are dual-listed. This means that a company is listed on two or more exchanges. 'If a company has a secondary listing on the JSE, it has its primary listing on another exchange and is regulated by the exchange holding its primary listing. Companies have secondary listings to enable them to raise capital in markets other than the market accessed by their primary listing.' Pick n Pay lists Boxer to make money Pick n Pay Group listed its pride and joy, Boxer, on the JSE with the aim of taking it out of its financial woes. Before the listing, Pick n Pay Group was technically insolvent; the retailer's revenue increased from R109.28 billion to R115.37 billion, while trading expenses rose from R20.15 billion to R22.55 billion. Total liabilities exceeded total assets by R183 million. However, CEO Sean Summers said the retailer has a strategy to turn the ship around, including the listing of Boxer. 'The Boxer IPO remains pivotal to our strategy, and their remarkable performance continues to prove it is an exceptional business. We are excited to see it thrive as a listed entity,' said Summers. Through Boxer's initial public offering (IPO), Pick n Pay was able to raise more than R8.5 billion from the 157.4 million shares allocated to qualifying investors at a share price of R54. Pick n Pay still owes 63% of Boxer. NOW READ: How did Pick n Pay do it? From technically insolvent to growing sales in months
The Star
13-05-2025
- Business
- The Star
SA data, airtime too expensive
Concerns over the high costs of data and telephone calls have been raised by various political voices over time. The persistent issue of expensive data and telephone call costs in South Africa requires urgent and meaningful intervention. It has been six years since Minister Stella Ndabeni-Abrahams, Minister of Communications and Digital Technologies, committed to tackling the "exorbitant" pricing within the communications sector. Regrettably, this commitment has not yet translated into noticeable improvements for consumers. A comparison with other African nations clearly illustrates the price discrepancy. In Ghana, for example, 1 GB of data can be obtained for as little as R1.49, with the highest price point around R23 for the same amount. South African consumers, on the other hand, face considerably steeper charges. To illustrate, Cell C offers 1 GB valid for a single day at R25. Capitec Connect charges R25 for 1 GB valid for a week, and R45 for data without expiry. Even these rates appear more competitive when compared to Vodacom and MTN, both of which charge R89 for 1.2 GB. Further highlighting the disparity, data costs in Nigeria and Brazil are significantly lower, with 1 GB priced at about US$0.39 (R7.12) and US$0.40 (R7.31), respectively. Concerns over these high costs have been raised by various political voices over time. The Inkatha Freedom Party initially called for action, and more recently, the Economic Freedom Fighters (EFF) have advocated for the immediate removal of expiry dates for prepaid mobile data and airtime. This underscores the double challenge faced by consumers: high prices coupled with the risk of losing unused data and airtime due to expiration. Promotional offers, such as limited-time WhatsApp data, often force users into intensive, short-term usage to avoid losing their allocation. Until significant reductions in data and call costs are achieved, many South Africans, particularly the youth in both rural and urban areas who are disproportionately affected by these high expenses, will likely continue to feel that the financial burden they face is not being adequately addressed by the relevant authorities.
IOL News
12-05-2025
- Business
- IOL News
SA data, airtime too expensive
Concerns over the high costs of data and telephone calls have been raised by various political voices over time. The persistent issue of expensive data and telephone call costs in South Africa requires urgent and meaningful intervention. It has been six years since Minister Stella Ndabeni-Abrahams, Minister of Communications and Digital Technologies, committed to tackling the "exorbitant" pricing within the communications sector. Regrettably, this commitment has not yet translated into noticeable improvements for consumers. A comparison with other African nations clearly illustrates the price discrepancy. In Ghana, for example, 1 GB of data can be obtained for as little as R1.49, with the highest price point around R23 for the same amount. South African consumers, on the other hand, face considerably steeper charges. To illustrate, Cell C offers 1 GB valid for a single day at R25. Capitec Connect charges R25 for 1 GB valid for a week, and R45 for data without expiry. Even these rates appear more competitive when compared to Vodacom and MTN, both of which charge R89 for 1.2 GB. Further highlighting the disparity, data costs in Nigeria and Brazil are significantly lower, with 1 GB priced at about US$0.39 (R7.12) and US$0.40 (R7.31), respectively. Concerns over these high costs have been raised by various political voices over time. The Inkatha Freedom Party initially called for action, and more recently, the Economic Freedom Fighters (EFF) have advocated for the immediate removal of expiry dates for prepaid mobile data and airtime. This underscores the double challenge faced by consumers: high prices coupled with the risk of losing unused data and airtime due to expiration. Promotional offers, such as limited-time WhatsApp data, often force users into intensive, short-term usage to avoid losing their allocation. Until significant reductions in data and call costs are achieved, many South Africans, particularly the youth in both rural and urban areas who are disproportionately affected by these high expenses, will likely continue to feel that the financial burden they face is not being adequately addressed by the relevant authorities.
IOL News
11-05-2025
- IOL News
Why cybercrime is a bigger concern than load shedding in South Africa
After two cyber attacks targeting mobile networks, one expert has stated that this issue is becoming a big risk, it potentially exceeds even the impact of challenges like load shedding. Image: . Following two recent cyber attacks targeting mobile networks, one expert stated that the issue is becoming such a big risk, that it potentially exceeds even the impact of challenges like load shedding. ESET's recent bi-annual Threat Report stated: 'South Africa is the most targeted country in Africa when it comes to infostealer and ransomware attacks.' One notable incident involved Cell C, which reported in April that RansomHouse had unlawfully disclosed data after hacking South Africa's fourth-largest mobile operator last November. Although the exact number of compromised individuals is unclear, the operator had 7.7 million subscribers as of February. Data accessed included: Full names and contact details (email, phone numbers) ID numbers Banking details (if stored for billing purposes) Driver's License Numbers Medical Records (if supplied for closure of accounts on the death of a family member) Passport details At the end of last month, Africa's largest mobile network operator, MTN, announced a significant cybersecurity incident that resulted in unauthorised access to the personal information of customers across several of its markets. Spiros Fatouros, the CEO of Marsh McLennan, Africa and South Africa, said that 'these events serve as a critical reminder that cybercrime is no longer a peripheral concern but a central business risk, arguably surpassing traditional challenges like load-shedding in its potential impact'. ESET's bi-annual Threat Report, which collected data between June and November 2024, showed that over 40% of ransomware attacks on the continent occurred in South Africa. This came as INTERPOL's African Cyberthreat Assessment Report 2022 found that 230 million cyber threats were detected in South Africa in that year. Approximately 219 million, or 95.21% were email-based attacks. At that stage, South Africa was seeing a 100% increase in mobile banking application fraud and is experiencing on average 577 malware attacks every hour. Fatouros noted that there is an escalating cyber threat landscape that businesses across the globe are having to deal with. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕
IOL News
02-05-2025
- IOL News
Cyber-attacks pose a greater threat than load shedding in South Africa
After two cyber attacks targeting mobile networks, one expert has stated that this issue is becoming a big risk, it potentially exceeds even the impact of challenges like load shedding. Image: IOL Following two recent cyber attacks targeting mobile networks, one expert stated that the issue is becoming such a big risk, that it potentially exceeds even the impact of challenges like load shedding. ESET's recent bi-annual Threat Report stated: 'South Africa is the most targeted country in Africa when it comes to infostealer and ransomware attacks.' One notable incident involved Cell C, which reported in April that RansomHouse had unlawfully disclosed data after hacking South Africa's fourth-largest mobile operator last November. Although the exact number of compromised individuals is unclear, the operator had 7.7 million subscribers as of February. Data accessed included: Full names and contact details (email, phone numbers) ID numbers Banking details (if stored for billing purposes) Driver's License Numbers Medical Records (if supplied for closure of accounts on the death of a family member) Passport details At the end of last month, Africa's largest mobile network operator, MTN, announced a significant cybersecurity incident that resulted in unauthorised access to the personal information of customers across several of its markets. Spiros Fatouros, the CEO of Marsh McLennan, Africa and South Africa, said that 'these events serve as a critical reminder that cybercrime is no longer a peripheral concern but a central business risk, arguably surpassing traditional challenges like load-shedding in its potential impact'. ESET's bi-annual Threat Report, which collected data between June and November 2024, showed that over 40% of ransomware attacks on the continent occurred in South Africa. This came as INTERPOL's African Cyberthreat Assessment Report 2022 found that 230 million cyber threats were detected in South Africa in that year. Approximately 219 million, or 95.21% were email-based attacks. At that stage, South Africa was seeing a 100% increase in mobile banking application fraud and is experiencing on average 577 malware attacks every hour. Fatouros noted that there is an escalating cyber threat landscape that businesses across the globe are having to deal with. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕
