Cell C, which recently completed a long awaited recapitalisation process to stabilise its balance sheet, has appointed Brett Copans to a newly created role of chief restructuring officer.
The appointment is part of a wider strategy to expand SA’s fourth-largest mobile operator now that balance sheet issues have been addressed.
Cell C’s largest shareholder, Blue Label Telecoms, recently completed the long-awaited recapitalisation of the troubled mobile operator. Cell C has struggled to make a profit since it opened for business in 2001. It has been laden with long-term debt of R8.7bn, prompting Blue Label and Lesaka Technology (formerly known as Net1), which owned 15% at the time, to write down their combined R7.5bn investment to nil.
Since finalising new terms with lenders, Cell C has been making moves geared towards expanding its offering.
Cell C expansion
The mobile provider says the intention of this role “is to ensure the prudent and efficient use of resources and funding allocation to high value opportunities.” This is meant to be a key part in reviewing all major investment decisions to align with the company’s strategy.
“Moving into a new phase of growth post-recapitalisation we have identified a number of key strategic projects and high value opportunities to take Cell C forward and drive our ambitions to transform from a traditional telco [telecommunications company] to techco [technology company],” said Cell C CEO Douglas Craigie Stevenson.
“It’s imperative that we apply the necessary skills, oversight and governance principles to evaluating and implementing these initiatives to ensure maximum return on investment. Brett’s experience will be invaluable in this.”
As part of the expansion narrative, Capitec recently became the latest on Cell C’s roster of mobile virtual network operators (MVNOs). This means it leases network infrastructure from Cell C to sell data and voice services to its customers.
MVNOs — which include FNB Connect, Mr Price Mobile and Standard Bank Mobile — contribute about 2% of the total mobile subscribers in SA.
For Cell C, this piece of business accounts for about 10% of its customer base and 15% of revenue.
Outside MVNO services, Cell C is investing in fixed-internet products, aiming to take advantage of growing demand for such services in the home and business market.
An experienced hire
A chartered accountant, Copans will be a member of the company’s executive committee, reporting to Craigie Stevenson. He joined the mobile provider in April 2022 and was mainly responsible “for ensuring the successful conclusion of the recapitalisation.”
Before joining the mobile provider, Copans spent 18 years at Investec Bank and then founded Pentrich Financial Services, a specialist financial services business providing capital raising, advisory and management services to companies.
He has accounting and commerce degrees from the University of the Witwatersrand, is a certified financial analyst and has leadership training from Harvard Business School. Copans’ expertise includes investment banking, capital raising, financial restructuring, asset acquisition and disposals in industries like banking, telecommunications, and property development.
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