Blue Label reportedly gets approval to take control of Cell C. The South African Competition Commission has given the green light to Blue Label Telecom to assume control of the mobile operator Cell C.
Blue Label Take Control of Cell C
The recommendation from the commission to the competition tribunal reveals that this very merger is “subject to conditions to mitigate information exchange concerns, and conditions ensuring the continued use of certain prepaid airtime distribution channels for a period, post-merger.”
Blue Label Telecom, which already owns nearly half of Cell C, wants to increase its ownership to over half by buying more shares. This would give them more control over Cell C.
They’ve also asked for permission from the communications regulator (ICASA) to transfer Cell C’s spectrum licenses to another company called TPC.
What Shareholders Think About Blue Label Having Control Over All the Licenses
However, CellSAf, a smaller shareholder in Cell C, isn’t happy about this. They’ve complained that Blue Label having more than half of Cell C doesn’t mean they should control all the licenses.
Cell C says that even though Blue Label owns a lot of the company’s shares and debt, they don’t actually control how Cell C is managed.
Blue Label’s Process to Take over Cell C
For now, Blue Label’s power to make big decisions for Cell C is limited until they get the okay from both ICASA and the Competition Tribunal to own more than half. In December 2023, Blue Label’s subsidiary TPC officially started the process to take over Cell C.
TechPoint Africa reported in February 2024 that Blue Label aims to complete the takeover in six months, once they get all the necessary approvals from regulators.
Cell C to Cut Its Workforce by a Whopping 40%
Cell C also shared that Blue Label’s subsidiary has been providing financial support, injecting R5.5 billion into the company and settling debts, while also lending them R1.03 billion. Despite all this, Cell C is considering cutting its workforce by 40% to save money and become more flexible.
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