Blue Label renews Cell C cautionary

Blue Label Telecoms, the JSE-listed firm that owns 45% of Cell C, is still in talks about recapitalising the debt-laden mobile operator’s balance sheet.

Blue Label renewed a cautionary notice to shareholders on Wednesday, as required under JSE listing rules, after first telling shareholders about the talks on 26 August 2021.

It’s the third time that Blue Label has renewed the cautionary. It’s not known why the discussions are taking as long as they are, though there are many entities that are party the recap plan, including Cell C’s bondholders.

In its first cautionary to shareholders, Blue Label explained that its wholly owned subsidiary, The Prepaid Company — the entity that holds the Cell C stake — had concluded a term sheet for an airtime purchase transaction with Investec, Rand Merchant Bank and other lenders.

“This arrangement is subject to the conclusion of all legal documentation and the fulfilment of conditions precedent under such legal documentations,” Blue Label said in the initial cautionary notice.  — (c) 2022 NewsCentral Media