SENS Note - 14 July 2000
M-Cell share swap with Transnet
 
Johnnic and Transnet have entered into a deal which is expected to boost their approaching bids for a second telecommunications license and inject R2.5bn into Transnet's recapitalisation and debt reduction programme. The deal will see Johnnic's subsidiary, M-Cell, gain 100% control of cellular group MTN through a share swap agreement with Transnet. The deal sees M-Cell buying the remaining 23% in MTN from Transnet, making it a wholly owned M-Cell subsidiary. M-Cell will issue 366m new shares to Transnet for its MTN stake giving the transport utility a 24% interest in M-Cell. Johncom has also bought 75m M-Cell shares from Transnet for R2.475bn.