Blue Label Telecoms set to take control of Cell C

On the Business news Blue Label Telecoms set to take control of Cell C as reported by African2nice Tv about how Blue Label Telecoms set to take control of Cell C.

Blue Label Telecoms is officially set to take control of Cell C, a telco in South Africa, after communications regulator Icasa approved the transfer of the mobile operator’s spectrum and network licences. This is a major step forward for Blue Label, which already owns 49.5% of Cell C and has been working on turning the struggling company around.

The licence transfer approval has been big news, and it seems the market caught wind of it early. Blue Label’s share price shot up recently, hitting a 52-week high of R6.20/share on Thursday — a 71% jump in the past year. Investors are clearly betting that a Cell C comeback could give Blue Label the boost it’s been waiting for.

But here’s the catch: Cell C isn’t handing over its licences entirely. According to Icasa, the mobile operator will still hold and operate the licences, even as Blue Label (through its subsidiary, The Prepaid Company) takes over a controlling 53.57% stake. This setup keeps Cell C in charge of its licensed services while giving Blue Label the reins to steer the company’s future.

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Cell C’s leadership, now under CEO Jorge Mendes, seems optimistic about the company’s recovery. Mendes has been busy laying out strategies to get the operator back on track, and this deal could be a game-changer.

Not everyone was on board with the licence transfer at first. Cell C’s empowerment shareholder, CellSAf, raised concerns about what they called a potential “asset stripping” by Blue Label. However, Cell C clarified that the licences remain with them—it’s just the ownership structure that’s changing.

Even the Competition Commission gave the green light to the deal last year, with some conditions to ensure fair play in airtime distribution and limit information-sharing issues. Now, all eyes are on the Competition Tribunal for its final approval.

For now, this deal represents a fresh start for Cell C and a big opportunity for Blue Label to capitalise on the operator’s recovery. With investor confidence growing and a solid plan in place, it’ll be interesting to see how this shakes up the South African telecom landscape.