The listing of mobile operator Cell C “is not far down the line”, according to Blue Label joint-CEO Brett Levy.<\/p>\n
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.<\/p>\n
The mobile operator’s management and staff will own 30% of the company.<\/p>\n
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”.<\/p>\n
He said that all big operators should list due to their liquidity on the market, and their profile.<\/p>\n
He said that a restructured Cell C offers compelling growth propsects – including listing – three to four years down the line.<\/p>\n
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.<\/p>\n
Dos Santos said that the next three years would be used to position the company strongly for a favourable listing.<\/p>\n
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.<\/p>\n
He stressed that its existing contracts with operators including Vodacom and MTN will remain in place.<\/p>\n
The group is a distributor of secure electronic tokens<\/span>, and airtime vouchers for the country\u2019s mobile operators.<\/p>\n The equity structure of Cell post the acquisition will be:<\/p>\n Cell C-linked Blue label Telecoms lifts interim revenue to R12.9 billion<\/a><\/strong><\/p>\n Details emerge on Cell C JSE listing date<\/a><\/strong><\/p>\n\n
More on Blue Label and Cell C<\/h3>\n