Blue Label Telecoms has agreed to acquire control of Cell C, taking its shareholding beyond 50%.
Browsing: Brett Levy
Newly appointed Cell C CEO Jorge Mendes has no intention of starting a price war with his bigger rivals in telecoms.
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.
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.