The Independent Communications Authority of South Africa (Icasa) has said that Cell C followed due process with regards to its recapitalisation which was finalised earlier this year.
The recapitalisation was done as means to both grow Cell C and decrease its net debt. The end result of the recapitalisation saw Blue Label Telecoms claim ownership of 45% of the network operator’s shares.
Shortly after the announcement that the recapitalisation was complete Icasa claimed that the deal was not compliant with the Electronic Communications Act of 2015.
The authority launched an investigation and has found that Cell C did in fact follow due process.
“Cell C welcomes ICASA’s confirmation that Cell C followed the correct process in the notification of its recapitalisation transaction and that it has complied with all applicable Regulations,” said the operator in a statement.
Cell C chief executive officer Jose Dos Santos added that the recapitalisation of Cell C was good for the industry, the economy and users.
“The successful conclusion of this transaction has ensured a sustainable future for the company and its employees. We now have a solid foundation to really drive competition in an industry that has been marred by a duopoly at the expense of the consumer,” Dos Santos said.