The JSE warned on Tuesday that Blue Label Telecoms failed to submit its annual financial results on time and that if it fails to do so by month-end, its shares may be suspended from trading.
In a routine statement issued by the bourse before the market opened, it said it “wishes to advise that the above-mentioned company has failed to submit its provisional report within the three-month period stipulated in the JSE’s listings requirements”.
“Accordingly, the company’s listing on the JSE trading system has been annotated with an “RE” to indicate that it has failed to submit its provisional report timeously and that the listing of this company’s securities is under threat of suspension and possible removal.”
Should Blue Label, whose year-end is 31 May, fail to submit its provisional report by 30 September, “its listing may be suspended”, the JSE said.
On 19 August, Blue Label said it would delay publication of its full-year financial results until late September to deal with various issues related to Cell C’s recapitalisation and restructuring. Blue Labels owns 45% of Cell C.
The company, which had been expected to publish its results in late August, will now only do so on 26 September.
“Blue Label’s audit for the year ended 31 May 2019 is substantially complete. However, the group is currently in the process of determining the valuation of its investment in Cell C, incorporating the effects of the transactions that are currently in progress,” the company said in a statement to shareholders last month.
Carrying value
“The outcome will have an impact on the carrying value of the investment, the assessment of the remaining fair values of (Blue Label investment vehicles) SPV1 and SPV2 (as detailed in the trading statement published on the stock exchange news service on 22 February 2019) as well as the recoverability of the existing deferred tax asset within Cell C,” it said last month.
“An extensive process is currently being undertaken by Cell C management in order to perform an assessment of the extent of the impact that the above transactions will have on Cell C’s financial statements, which are currently being finalised.”
In February, Blue Label said the Buffet Consortium, which is led by reclusive billionaire property mogul and businessman Jonathan Beare, planned to buy a minority shareholding in Cell C that would bolster the mobile operator’s balance sheet.
Blue Label concluded a “binding term sheet” with the consortium in terms of which it would become a minority shareholder, pending certain conditions being fulfilled. Discussions toward the implementation of the deal are ongoing, but are proceeding well, both Cell C and Blue Label have said. — (c) 2019 NewsCentral Media
