Cell C bondholders agree to debt restructuring

Johannesburg - Bondholders of Cell C have unanimously agreed to a R2.3bn debt restructuring, the company said, allowing it to free up cash for network expansion.

Cell C, South Africa's third-largest mobile carrier, is fighting to take market share from giants Vodacom Group and MTN Group and has embarked on an aggressive pricing strategy to win new customers.

The company last month asked bondholders for permission to delay repayment of €77.4m of senior notes due in July 2015 for three years, after earlier reaching a similar agreement with top shareholder Saudi Oger over €82.7m worth of debt.

Cell C said in a statement late on Friday that all of the bondholders have agreed to allow it to push back the maturity on the debt until 2018.

Cell C's chief financial officer told Reuters last month the company is looking to spend R2.3bn on its network this year and a similar amount next year.