‘Reclusive billionaire’ buying a stake in Cell C
Blue Label has announced that investor Jonathan Beare’s Buffet Consortium will acquire a minority stake in Cell C.
The group said that it has concluded a binding term sheet with The Buffet Consortium in terms of which Buffet shall become a minority shareholder in Cell C.
The deal is subject to certain conditions being met, but Blue Label said that Buffet’s support will bolster Cell C’s balance sheet and allow for sustainable growth for the future.
“A further detailed announcement shall be made once the parties have executed the transaction documents required to give effect to the principles recorded in the binding term sheet,” Blue Label said.
The Buffet Consortium is owned by Jonathan Beare, who has been described as a “reclusive billionaire” by media groups.
According to the City Press, KZN-based Beare is thought to be one of the largest private land owners in the country. He is a backer of the Balwin Properties group, and has previously launched joint real-estate ventures with billionaire Patrice Motsepe’s African Rainbow Capital.
The extent of his wealth is unknown and is not publicly quantifiable.
Blue Label has also published a trading statement for the six months ended November 2018, saying that it expects to make a substantial loss, compared to the prior year – largely because of Cell C.
“Although the core businesses of the Blue Label group generated positive growth, the once-off underlying financial adjustments relating to Cell C had a negative impact thereon,” it said.
“The financial results for the comparative six-month period ended 30 November 2017 included the recognition of a deferred tax asset by Cell C, of which the group’s share equated to R864-million. This was a once- off recognition to earnings in the comparative period.”
Earlier on Friday (22 Februaru) Blue Label announced that Cell C CEO, Jose dos Santos would be stepping down from the group.
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