South African Network Seeks License Amendment

South Africa's telecoms regulator, ICASA says that it recently received an application by the newest GSM operator, Cell C for the amendment of its licence. The proposed amendment is in relation to a licence condition requiring that 40% of the issued share capital of Cell C vests in the hands of historically disadvantaged persons as defined in the licence.

This shareholding is currently held by CellSAf. Cell C has requested that this condition be amended to read that 25% of the issued share capital of Cell C vests in the hands of historically disadvantaged persons. If the amendment is effected, it would amount to a dilution of shareholding held currently by historically disadvantaged persons.

Together with the application for amendment, Cell C has brought to ICASA, a request for the approval of the transfer of 15% of the current 40% shareholding held by CellSAf to a foreign company, namely Lanun Securities. This request is made pursuant to the licence as it is conditional for Cell C to obtain prior regulatory approval if more than 10% of the shares held by historically disadvantaged persons are transferred.

Cell C has submitted that the transfer of shares, if approved, would result in the accrual of benefits to CellSAf, in that, amongst other things, it would be one of the few historically disadvantaged persons in the country to possess debt free, unencumbered shares."

Posted to the site on 23rd May 2005