Blue Label has announced that investor Jonathan Beare’s Buffet Consortium will acquire a minority stake in Cell C.<\/p>\n
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.<\/p>\n
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\u00a0sustainable growth for the future.<\/p>\n
“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.<\/p>\n
The Buffet Consortium is owned by Jonathan Beare, who has been described as a “reclusive billionaire” by media groups.<\/p>\n
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.<\/p>\n
The extent of his wealth is unknown and is not publicly quantifiable.<\/p>\n
Blue Label has also published\u00a0a 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.<\/p>\n
\u201cAlthough 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,\u201d it said.<\/p>\n
\u201cThe 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\u2019s share equated to R864-million. This was a once- off recognition to earnings in the comparative period.\u201d<\/p>\n
Earlier on Friday (22 Februaru) Blue Label announced that Cell C CEO, Jose dos Santos would be stepping down from the group.<\/p>\n