Blue Label Telecoms cautioned shareholders on Monday that it remains in talks about a recapitalisation of mobile operator Cell C, in which it holds a 45% stake.
The updated cautionary notice by the JSE-listed firm, which is required in terms of the bourse’s listing rules, comes after Blue Label said on 26 August 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 financiers for the recapitalisation.
“This arrangement is subject to the conclusion of all legal documentation and fulfilment of all conditions precedent under such legal documentation,” Blue Label said at the time.
Cell C is expected to provide an update on its half-year financial performance to June 2021 later this month.
In August, Cell C said it had reported R2.36-billion in profit before tax for the 12 months ended 31 May 2021. “Cell C has reported a significant turnaround in profitability,” said CEO Douglas Craigie Stevenson in an interview with TechCentral at the time.
Cell C’s financial year ends in December, and so the R2.36-billion PBT amount does not form part of its audited accounts.