Communications regulator Icasa and the Competition Tribunal will have separate public hearings in the coming months to investigate Blue Label Telecoms’ proposed acquisition of control in mobile operator Cell C.
Blue Label, which has invested more than R7.5-billion in Cell C, holds 49.5% of Cell C’s equity, but has moved to buy equity control of the company.
Currently Blue Label has a non-controlling 49.5% stake in Cell C, and it has said it wants to acquire a further 4% stake in the business to take its equity holding to 53.5%.
Brett Levy, co-CEO of Blue Label, told TechCentral on Thursday that Icasa has set 19 September as the date for public hearings into the proposed transaction. Levy said he hopes the Competition Tribunal will hear the matter by the end of October.
In April, the Competition Commission recommended to the tribunal that the transaction be allowed to proceed, with conditions.
“The commission has recommended that the Competition Tribunal approves the merger subject to conditions to mitigate information-exchange concerns, and conditions ensuring the continued use of certain prepaid airtime distribution channels for a period, post-merger,” the regulator said in a statement on at the time, without elaborating.
Spectrum
Blue Label, through The Prepaid Company (TPC), has also filed an application with Icasa for approval to transfer Cell C’s spectrum licences to TPC.
“Cell C will still retain full control of its spectrum in this operating model and will continue to operate as a licensee providing mobile services to its customer base as a mobile network operator,” Cell C said in a statement last December.
TCS | Levy brothers on the future of Blue Label and Cell C
Last September, Levy said Blue Label was also keen to bring in a new strategic investor into Cell C. He said on Thursday that this is still the plan, but emphasised no discussions are currently taking place. – © 2024 NewsCentral Media
