Deloitte Corporate Finance is proud to have advised on the successful recapitalisation of Cell C, one of South Africa’s leading mobile network operators, in a deal that restructured over R17 billion of debt and other creditors for the company.
The recapitalisation will assist Cell C in resolving liquidity challenges that date back to 2018.
The transaction achieved financial close at the end of September. Deloitte Corporate Finance (South Africa) co-advised on the transaction together with Teneo and Deloitte Financial Advisory UK while ENS Africa and Norton Rose Fulbright were the legal advisors.
Deloitte as a joint financial advisor provided support to Cell C on its holistic turnaround strategy and recapitalisation which involved shifting from a capital-intensive business model to a variable cost-based model and deleveraging the balance sheet.
Deloitte worked closely with key stakeholders to implement a recapitalisation, which included an injection of c. R2,3bn in new money, which was led by Cell C’s largest shareholder, with a consortium of funders. The restructuring included a consensual compromise of certain lease obligations to achieve a sustainable balance sheet and operating cost base, as part of a wider operational turnaround plan.
Deloitte Corporate Finance specialises in mergers & acquisitions, debt advisory, financial turnarounds, B-BBEE advisory and has extensive experience in advising clients in complex situations.