Blue Label Telecoms, the largest shareholder in Cell C, with a current stake of about 49.5%, may seek to buy a majority and controlling stake in the mobile operator.
That’s according to Blue Label Telecoms co-CEO Brett Levy, who was speaking to investors on Wednesday evening during a conference call.
He said JSE-listed Blue Label is considering several options for its stake in Cell C, one of which is to take control of the business, which he believes is poised for strong growth following the recent conclusion of the Blue Label-led recapitalisation of the operator’s balance sheet.
Answering a question from an analyst about whether it would make sense for Blue Label to consolidate Cell C and take control of the company, Levy said: “We believe in this asset… The Blue Label board must make one of three decisions post the recap. Decision one is remain as we are – and that’s not going to be a decision. So, it’s one of two decisions: do we sell down, or do we take control? In time, we will give you that exact answer.”
Asked by TechCentral what regulatory hurdles Blue Label might encounter if it were to move to take control of Cell C, Levy said he couldn’t think of anything obvious.
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“There’s nothing that stands out from a Competition Commission point of view; and there’s definitely nothing that stands out from an Icasa point of view,” he said of the competition and telecommunications regulators.
“Everyone knows what we’ve [done] over the last seven years to save this business, and the value we could add to it if we had control of it. From a change of control [perspective] at Icasa, I think everyone would welcome it if we went this route, so everyone has stability.” — © 2022 NewsCentral Media