Cell C adds two independent directors to board in bid to improve governance
Mobile operator Cell C has announced the addition of two new independent directors to its board.
The announcement comes a day after its largest shareholder, Blue Label Telecoms Limited, announced that Cell C had defaulted on interest payments on a $184m loan (about R2.7bn at current exchange rates) which was due in December 2019.
Blue Label Telecoms bought 45% of Cell C's issued share capital for R5.5bn in 2017.
After falling on Tuesday in the wake of the announcement, Blue Label's share were trading up 2% at 14:30 on Wednesday.
In a statement on Wednesday, Cell C said independent non-executive directors Sindi Zilwa and Mark Nelson-Smith were joining the board with immediate effect.
" These appointments are in line with Cell C’s continued commitment to good governance and demonstrates the board’s focus on diversity and transformation,' it said in a statement.
Cell C Chair, Joe Mthimunye, said the appointments are an "integral part of Cell C’s journey to improved financial stability, sound business ethics, good governance, better operational performance and sustainability.”
In late November 2019, Cell C rebuffed a takeover bid from Telkom.
- Compiled by Jan Cronje