Blue Label Telecoms and Cell C deal near conclusion
According to Blue Label Telecoms, which is currently buying a 35% stake in telecoms provider Cell C, the effective date of the transaction is set at 1 June 2016. Brett Levy (pictured), Blue Label joint-CEO, has said that while a few hurdles still lie ahead, things are otherwise "looking positive" for the transaction.
Blue Label is purchasing its stake in Cell C for R4 billion. As part of the deal, current shareholder 3C Telecommunications will put money into Cell C to reduce debt, also retaining a 35% stake in the company. The equity structure of Cell post acquisition will thus be 35% share held by 3C Telecommunications, a 35% share held by Blue Label Telecoms, and a 30% share held by Cell C Management.
Furthermore, according to Levy, a listing for Cell C is not far off. Levy says a restructured Cell C offers compelling growth prospects - including listing - down the line. Jose dos Santos, Cell C CEO, previously confirmed that the company is planning to list on the JSE in the next three or so years. Dos Santos said Cell C would use this time to position the company strongly for a favourable listing.