Blue label may take over Cell C in 6 months according to reports. According to several reports coming in, Blue Label is reportedly working on a takeover plan over Cell C in six months’ time.
Blue Label May Take Over Cell C in 6 Months
Blue Label Telecoms is looking to increase its stake in Cell C over the next six months, aiming to add 4.04% to its existing nearly half ownership through The Prepaid Company, a division of Blue Label Telecoms. However, before proceeding, it must secure approval from regulatory bodies such as the Independent Communications Authority of South Africa (ICASA) and the Competition Commission (CompCom).
The announcement came from Brett Levy, co-CEO of Blue Label, following the company’s recent financial report. Levy expressed hope for regulatory approval within the designated timeframe, although CellSAf, another Cell C shareholder owning a quarter of the shares, has expressed reservations, claiming a lack of consultation by the telco regarding the proposed plan.
Levy Remains Optimistic About Navigating the Regulatory Process Smoothly
Despite potential challenges, Levy remains optimistic about navigating the regulatory process smoothly. However, uncertainties persist until official approval is granted. Assuming the plan proceeds as intended, Cell C will continue under Blue Label’s ownership, with Cell C CEO Jorge Mendes emphasizing that the deal does not entail relinquishing control to Blue Label. Mendes underscores Cell C’s commitment to financial stability and ongoing operations.
Cell C Exploring Cost Reduction Measures
In January, Cell C explored workforce downsizing as part of cost reduction measures and operational streamlining in response to various challenges faced by the South African telco.
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