Cell C Holdings, the South African mobile network operator, is preparing to list on the Johannesburg Stock Exchange, according to an update issued by Blu Label Telecoms (JSE:BLU) on November 5.

The listing would involve an offering of existing shares held by Blu Label’s wholly owned subsidiary The Prepaid Company (TPC) through a private placement to qualified investors, subject to market conditions and JSE approval.

TPC intends to raise ZAR7.7bn (about $428mn), including a ZAR500mn ($28mn) overallotment option, and an allocation of about ZAR2.4bn ($133mn) in shares to a broad-based empowerment vehicle (BEE SPV). TPC said proceeds will be used to reduce indebtedness, settle selected interest-bearing obligations, support working capital, and fund a dividend distribution to shareholders.

The listed group would include Cell C and its subsidiaries, including Comm Equipment Company. Cell C CEO Jorge Mendes said the potential listing “will elevate the Cell C brand, enhance access to capital to sustain growth, instil public transparency and market discipline, and enhance the group’s profile with all stakeholders.”

Cell C is South Africa’s third-largest mobile network operator by subscriber share. Mendes said that while the company already forms part of a listed group structure, a separate listing would allow for a clearer capital structure and more direct alignment of strategy and funding.

As part of the broader restructuring, TPC has agreed to acquire Nedbank’s (JSE:NED) ZAR447mn ($25mn) loan claim and convert it to equity. TPC has also moved to acquire the Cell C stakes held by Nedbank and Lesaka Technologies (JSE:LSK; NASDAQ:LSAK), subject to lender and regulatory approvals.

Blu Label said it expects to retain majority control of Cell C following the transactions, subject to final offer allocations and pricing outcomes.

Separately, Cell C has reached a settlement with a large telecommunications lease provider to resolve balances owed for ZAR750mn ($42mn), to be funded through a Blu Label airtime acquisition and conversion mechanism tied to the restructuring.

Rand Merchant Bank, Investec Bank, and Morgan Stanley & Co International are acting as joint global coordinators and joint bookrunners. DLA Piper, Bowman Gilfillan, Milbank, and Werksmans are serving as legal advisers.

Blu Label said final pricing and the listing timetable will be confirmed once market conditions and JSE approval processes are completed.