The listing of mobile operator Cell C “is not far down the line”, according to Blue Label joint-CEO Brett Levy.
Blue Label Telecoms is set to purchase a 35% stake in Cell C for R4 billion. As part of the deal, current shareholder 3C Telecommunications will also put money into the company to reduce debt, and will retain a 35% stake in Cell C.
The mobile operator’s management and staff will own 30% of the company.
Levy told BusinessTech at the company’s interim results presentation on Tuesday, that a company like Cell C should list – “it’s a good strategy”.
He said that all big operators should list due to their liquidity on the market, and their profile.
He said that a restructured Cell C offers compelling growth propsects – including listing – three to four years down the line.
Cell C CEO Jose dos Santos recently told the Sunday Times that the company is planning to list on the JSE in the next three to four years.
Dos Santos said that the next three years would be used to position the company strongly for a favourable listing.
Blue Label said that it expects the effective date of the transaction to be 1 June, 2016. Levy said that while there remains a few hurdles to overcome, “things are looking positive” for a transaction.
He stressed that its existing contracts with operators including Vodacom and MTN will remain in place.
The group is a distributor of secure electronic tokens, and airtime vouchers for the country’s mobile operators.
The equity structure of Cell post the acquisition will be:
- 3 C Telecommunications – 35%
- Blue Label – 35%
- Cell C Management – 30%