TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Huge Group to acquire what was Virgin Mobile in South Africa

      6 July 2022

      TechCentral needs your feedback – 2022 reader survey now live

      6 July 2022

      Call for ‘energy emergency’ to end load shedding

      6 July 2022

      What South Africa can learn from India’s IT boom

      6 July 2022

      Where to next for Dimension Data

      5 July 2022
    • World

      China accuses US of ‘technological terrorism’

      6 July 2022

      Apple devices to get ‘Lockdown Mode’ to fight spyware

      6 July 2022

      Scientists at Cern observe three ‘exotic’ new particles

      6 July 2022

      Bitcoin’s first African adopter plans own digital currency

      6 July 2022

      Bitcoin hints at a bottom – but it may be different this time

      5 July 2022
    • In-depth

      The bonfire of the NFTs

      5 July 2022

      The NFT party is over

      30 June 2022

      The great crypto crash: the fallout, and what happens next

      22 June 2022

      Goodbye, Internet Explorer – you really won’t be missed

      19 June 2022

      Oracle’s database dominance threatened by rise of cloud-first rivals

      13 June 2022
    • Podcasts

      Demystifying the complexity of AI – fact vs fiction

      6 July 2022

      How your organisation can triage its information security risk

      22 June 2022

      Everything PC S01E06 – ‘Apple Silicon’

      15 June 2022

      The youth might just save us

      15 June 2022

      Everything PC S01E05 – ‘Nvidia: The Green Goblin’

      8 June 2022
    • Opinion

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»News»Net1 pulls out of Blue Label deal

    Net1 pulls out of Blue Label deal

    News By Duncan McLeod1 June 2017
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    [dropcap]N[/dropcap]et1 UEPS Technologies has decided not to subscribe for shares in Blue Label Telecoms as part of a recapitalisation plan for Cell C, but will still pursue a planned direct acquisition of 15% of the mobile operator’s equity for R2bn.

    In a statement to shareholders on Thursday, Net1 — whose CEO Serge Belamant stepped down on Wednesday amid uproar over a golden handshake worth more than R100m — the company said it had reached an agreement with Blue Label not to subscribe for the shares.

    It has been released from a R2bn guarantee issued by FirstRand Bank in favour of Blue Label, it said.

    At the same time, Net1 said it still plans to buy a non-controlling interest (previously disclosed as 49,6%) of DNI-4PL Contracts, with an option to acquire a controlling stake in DNI in the future. DNI is a distributor of mobile subscriber starter packs for Cell C and distributes prepaid airtime through a network of field operatives and agents. It said talks are progressing regarding both deals.

    Blue Label has signed binding subscription agreements with alternative third-party investors

    In a separate statement to shareholders, Blue Label said the Cell C recapitalisation discussions — in terms of which it had previously said it was planning to acquire 45% of the mobile operator for R5,5bn — are “progressing”. It confirmed that Net1 will “no longer participate in the vendor consideration placement” in Blue Label.

    “In light of the above, Blue Label has signed binding subscription agreements with alternative third-party investors in terms of which they will, subject to the requisite shareholder approval and the Cell C recapitalisation becoming unconditional, subscribe for R2bn of Blue Label shares in terms of a vendor placement at a price of R15/share.”

    Blue Label said it has obtained “irrevocable undertakings” from more than 50% of its shareholders to vote in favour of the Cell C recapitalisation and the new vendor placements. It did not say who the new investors are.

    Due to the latest development, and “possible consequential amendments” to the Cell C recapitalisation plan, Blue Label will issue a revised circular to shareholders at a future date, it said.  — © 2017 NewsCentral Media

    Blue Label Telecoms Cell C DNI-4PL Contracts Net1 Net1 UEPS Technologies Serge Belamant top
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleApple set to debut Siri smart speaker
    Next Article Iflix unveils Africa launch plans

    Related Posts

    Huge Group to acquire what was Virgin Mobile in South Africa

    6 July 2022

    TechCentral needs your feedback – 2022 reader survey now live

    6 July 2022

    Call for ‘energy emergency’ to end load shedding

    6 July 2022
    Add A Comment

    Comments are closed.

    Promoted

    Hot Ink certifies and diversifies to maintain competitive printing edge

    5 July 2022

    Increased flexibility with Dell Precision Mobile Workstations

    5 July 2022

    The 5 secrets of customer experience in the cloud era

    5 July 2022
    Opinion

    South Africa can no longer rely on Eskom alone

    4 July 2022

    Has South Africa’s advertising industry lost its way?

    21 June 2022

    Rob Lith: What Icasa’s spectrum auction means for SA companies

    13 June 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.