South Africa's Cell C's shareholder CellSAF launched a court challenge against Blue Label Telecoms led recapitalisation plan and wants the transaction to be set aside, according to court papers seen by Reuters on Thursday.
CellSAF said in the court papers that it was not informed of the deal or given the opportunity to comment on it or consider the various documents on the transaction before it went ahead.
CellSAF holds a 25% stake in a firm that owns Cell C, the third-largest mobile phone operator.
Blue Label, the largest distributor of pre-paid airtime and data in South Africa, said in October it will pay 5.5-billion rand ($400-million) for a 45% stake in debt-laden mobile firm Cell C Ltd.