Johannesburg - Cell C wants to know why Vodacom’s [JSE:VOD] R7bn bid for Neotel was approved by a local regulator, and the company is even threatening legal action to try to stop the buyout.
Earlier this week, Bloomberg reported that the Independent Communications Authority of South Africa (Icasa) had approved the Vodacom-Neotel deal on two conditions.
These conditions reportedly included that the takeover be subject to compliance with local ownership law and adherence to terms regarding the roll-out of broadband infrastructure and services.
“Cell C is concerned that four days since the apparent approval of the Vodacom-Neotel transaction, Icasa has not published its decision nor explained the reasons for this decision,” the company said in a statement.
“With the exception of comments attributed to the outgoing chairman, Dr. Stephen Mncube in a news report, Icasa has remained mum on the approval of this transaction,” said Cell C.
However, Icasa spokesperson Paseka Maleka told Fin24 on Thursday afternoon that the regulator plans to publish reasons and conditions for the Vodacom-Neotel approval either on Friday or next week.
"We haven't published any reasons so far but we are going to be publishing a notice either tomorrow or on Monday about it that will detail everything, including the conditions for approval,” Maleka told Fin24.
"It will be in the Government Gazette but it will also be on the Icasa website,” he said.
Maleka added that the public will also have a chance to comment on the deal.
Impending legal action?
Cell C previously opposed the deal at a hearing with Icasa last year and the company on Thursday reiterated its opposition to the deal.
“Cell C will remain steadfast in its opposition to this merger and will use any and all legal avenues to do so,” said the operator.
Cell C further said that there has also been no mention on “the most contentious issue raised by various industry stakeholders, namely the ownership and transfer of spectrum”.
Vodacom, though, is still awaiting feedback from the Competition Commission on the Neotel bid.
Also, Vodacom spokesperson Richard Boorman told Fin24 on Wednesday that aspects of the Icasa approval are still being finalised.
"We are pleased to receive approval for the transaction. We will work with Icasa to finalise the conditions of the approval," Boorman told Fin24.
Cell C is South Africa’s third largest mobile network with 20 million subscribers while Vodacom is its biggest, with around 30 million subscribers.