Blue Label Telecoms, which owns about 49.5% of Cell C, looks set to make an offer to take control of the company in the coming months.
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Blue Label Telecoms, the largest shareholder in Cell C, may seek to buy a majority and controlling stake in the mobile operator.
In a surprise move, JSE-listed Blue Label Telecoms has called a meeting to update investors on “key business developments”.
JSE-listed Blue Label Telecoms on Thursday reported robust full-year results, with a big expansion in gross profit margin.
Blue Label Telecoms’ co-CEOs Mark and Brett Levy have expressed their frustration that investors continue to punish Blue Label for their Cell C deal, despite the solid performance of the group in recent years.
Blue Label Telecoms has said that the long-awaited recapitalisation of debt-laden mobile operator Cell C will be completed by no later than May this year.
Cell C’s largest shareholder, Blue Label Telecoms, disclosed on Thursday that a term sheet to recapitalise the mobile operator has finally been signed after protracted negotiations.
Cell C is showing signs of having turned the corner, at least when it comes to its income statement – the company’s balance sheet still needs fixing through a planned recapitalisation.
Blue Label Telecoms will report slight growth in headline earnings per share of between 0% an 4% for the six-month reporting period ended 30 November 2020.
Cell C’s largest shareholder, Blue Label Telecoms, is confident a recapitalisation of the mobile operator will be completed in the coming months and that this will put it on a new growth trajectory.