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CELL C MEDIA STATEMENT IN RESPONSE TO ICASA

Thursday, 31 August 2017

We refer to the Media Release issued by ICASA on 30 August 2017 regarding the transaction for the recapitalisation of Cell C.

Cell C is in the process of submitting extensive information to ICASA and is unclear why ICASA has reached the conclusion that the transaction "triggers the provisions of Section 13 of the Electronic Communications Act of 20015 (sic) and ought to have been filed as an application for change of control of the licensee" without first having heard Cell C's position. Cell C has received extensive legal advice and is comfortable that the recapitalisation does not amount to a transfer of control that would have required approval. The company is of the view that once ICASA, or whomever ultimately considers the transaction, has a proper understanding of it (which Cell C is at pains to provide), it will be clear that there has not been any transfer of control and that no approval is required.

Cell C also notes that ICASA has indicated that this is its "preliminary view" and it has not as yet given the company any indication (despite repeated requests from Cell C) why it has taken this view or what process it is following. It is therefore difficult for Cell C to engage with ICASA's views. Notwithstanding this, Cell C will submit detailed and extensive information to ICASA and welcomes the opportunity to engage further regarding this transaction that has ensured the survival of the company as a sustainable competitor in the sector, increased ownership by historically disadvantaged individuals and saved many thousands of jobs.



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