South Africa’s third largest mobile operator, Cell C have announced USD350 million in equity investment from Dubai-based Oger Telecom, Cell C’s majority shareholder.
The funding will give Cell C the liquidity to continue investing in its network quality, customer base and product offerings to its over 11.5 million customers. This will ultimately lower the cost to communicate in South Africa.
Mr Mohammed Hariri, Chairman of both Cell C and Oger Telecom said,“Under the leadership of Alan Knott-Craig, Cell C has gone from strength to strength. The company has a solid business strategy and we are confident that the Regulator will make decisions that give smaller players a better chance of being sustainable competitors. It is on this basis that we as shareholders are fully committed to the company and the country.”
Cell C CEO, Alan Knott-Craig said ICASA’s decision to conduct a market review of the remedies under the Call Termination Regulations has bolstered Cell C’s shareholders’ confidence in the company’s and the industry’s future. He added that with aggressive and proactive regulatory support, equity injection strengthens Cell C’s balance sheet.
“With this financial injection and a regulatory outcome that promotes sustainable competition for smaller players, Cell C will lead the way in lowering the cost to communicate and further expand its network coverage,” said Knott-Craig.