Blue Label could assume control of Cell C in half a year

Blue Label Telecoms, a company that currently owns almost 50% of Cell C, is hoping to increase its ownership by an additional 4.04% within the next six months. This acquisition would be made through The Prepaid Company, a subsidiary of Blue Label Telecoms. Before this can happen, they need the approval of regulatory bodies such as the Independent Communications Authority of South Africa (ICASA) and the Competition Commission (CompCom).

This news was disclosed by Blue Label’s co-CEO, Brett Levy, in light of the company’s most recent financial report. He conveyed his hope for the approval process to be completed in the next half year. However, this plan has not been received well by all involved parties. Specifically, CellSAf, another major shareholder in Cell C, having ownership of one-quarter of its shares, has voiced its discontent, stating that they were not consulted about this potential acquisition.

Despite the pushback, Levy remains hopeful about successfully navigating through the regulatory procedures. However, he acknowledged that this acquisition is not a certainty until it is officially approved.

Assuming the acquisition proceeds as planned, Cell C will continue to function as it currently does under the ownership of Blue Label. Further, Cell C’s CEO, Jorge Mendes, specified that this potential deal does not indicate that they will be surrendering full control of the company to Blue Label. Instead, the company is still actively involved, particularly in its financial stabilization efforts.

Earlier in January, the South African telecommunications company contemplated reducing its workforce as a measure to cut costs and augment operational flexibility. This consideration surfaced amidst various challenges the company was facing.