Cell C to restructure debt and invest in its network
28 July 2014 | Kavit Majithia
South African operator Cell C is planning to restructure €160 million worth of debt and free up capital to invest in its network.
The company is stepping up its efforts to gain market share from market leaders Vodacom and MTN, and is reportedly setting a strong pricing strategy to gain new customers.
Cell C, South Africa’s third-largest operator, has asked its bondholders to delay repayments due in July, worth approximately €77.4 million, by three years.
Speaking to Reuters, the company’s CFO Robert Pasley said: “I have better things to do with my capital than use it to repay debt at the moment, when I really need all the resources available to me to continue to invest in network infrastructure.”
Pasley said he plans to budget $219.2 million on network investments this year and the same amount next year.
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