Cell C to seek 73% debt reduction in buyout deal

Cutting debt: A woman uses her mobile phone in front of a store with Cell C branding in Kwandengezi, South Africa. The company is planning to cut its debt to 6 billion rand from 22 billion rand. – Reuters

JOHANNESBURG: Cell C Pty Ltd is seeking to cut its debt by 73% as part of a deal that will help South Africa’s third-largest mobile-phone operator sell a stake to Blue Label Telecoms Ltd while retaining its operating licence, according to two people familiar with the matter.

The proposed transaction will see Cell C split about 9 billion rand (US$688mil) of borrowings into three special purpose vehicles, said the people, who asked not to be identified because the talks are private.