{"id":193393,"date":"2025-09-01T15:58:58","date_gmt":"2025-09-01T15:58:58","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=193393"},"modified":"2025-09-04T16:09:28","modified_gmt":"2025-09-04T16:09:28","slug":"blue-label-telecoms-announces-restructuring-of-cell-c-ahead-of-potential-jse-listing","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/blue-label-telecoms-announces-restructuring-of-cell-c-ahead-of-potential-jse-listing\/","title":{"rendered":"Blue Label Telecoms announces restructuring of Cell C ahead of potential JSE listing"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

<\/p>\n

JSE-listed Blue Label Telecoms, soon to be renamed Blu Label Unlimited (BLT), on Monday announced a restructuring of Cell C ahead of a potential listing of the mobile phone operator.<\/p>\n

In an announcement to its shareholders, BLT said the pre-listing restructuring will involve various transactions to optimise Cell C\u2019s capital structure and balance sheet, in preparation for a separation from BLT and a listing on the JSE.<\/p>\n

Cell C has a strong market presence in South Africa and has seen strengthened management over the past 24 months, successfully returning it to a strong growth trajectory with significant improvements in operations and financial metrics.<\/p>\n

Cell C operates on a capital-light approach to its mobile network, using its own spectrum assets with the physical infrastructure owned by other mobile network operators.<\/p>\n

Cell C\u2019s net asset value, as described in the pre-listing restructuring proposal, was R8.31 billion as at May 31, 2025, while its operating profit attributable to Cell C was about R1.6 billion for the year to May 31. These values provide a glimmer of what Cell C\u2019s value might be on the JSE if it lists.<\/p>\n

The pre-listing restructuring includes the conversion of various claims totalling R3.68bn held by The Prepaid Company (TPC) against Cell C into Cell C’s equity structure.<\/p>\n

Currently, BLT owns 100% of TPC, which in turn owns 100% of CEC and 49.5% of Cell C. CEC, or Comm Equipment Company, is responsible for Cell C\u2019s postpaid offerings, and its internalisation through the restructuring will enable Cell C to assume full responsibility for its postpaid customer base.<\/p>\n

The restructuring will include the transfer of 100% of the shares in CEC to Cell C in exchange for Cell C equity shares; the exchange will occur at a price of R2.15bn.<\/p>\n

The restructuring  transactions also include the transfer of airtime with a sales value of between R7.3bn and R7.5bn from TPC to Cell C in exchange for Cell C shares.<\/p>\n

TPC will also acquire the shares in Cell C held by SPV4 and SPV5, these SPV’s relate to historical financing arrangements, in settlement of the debt obligations of those to TPC.<\/p>\n

BLT will also ensure that Cell C management had incentive structures in place as part of a listing. The listing proposal remains subject to shareholder, regulatory, and other approvals.<\/p>\n

BLT Joint-CEO Mark Levy has said previously that apart from other benefits for both groups, such as giving Cell C access to broader capital markets, the listing effectively allows Cell C to repay what it owes BLT. Cell C had defaulted on loans in 2020, and BLT injected funds into the operator to get it back on its feet.<\/p>\n

BUSINESS REPORT<\/strong><\/p>","protected":false},"excerpt":{"rendered":"

JSE-listed Blue Label Telecoms, soon to be renamed Blu Label Unlimited (BLT), on Monday announced a restructuring of Cell C ahead of a potential listing of the mobile phone operator.In an announcement to its shareholders, BLT said the pre-listing restructuring will involve various transactions to optimise Cell C\u2019s capital structure and balance sheet, in preparation for a separation from BLT and a listing on the JSE.Cell C has a strong market presence in South Africa and has seen strengthened management over the past 24 months, successfully returning it to a strong growth trajectory with significant improvements in operations and financial metrics.Cell C operates on a capital-light approach to its mobile network, using its own spectrum assets with the physical infrastructure owned by other mobile network operators.Cell C\u2019s net asset value, as described in the pre-listing restructuring proposal, was R8.31 billion as at May 31, 2025, while its operating profit attributable to Cell C was about R1.6 billion for the year to May 31. These values provide a glimmer of what Cell C\u2019s value might be on the JSE if it lists.The pre-listing restructuring includes the conversion of various claims totalling R3.68bn held by The Prepaid Company (TPC) against Cell C into Cell C’s equity structure.Currently, BLT owns 100% of TPC, which in turn owns 100% of CEC and 49.5% of Cell C. CEC, or Comm Equipment Company, is responsible for Cell C\u2019s postpaid offerings, and its internalisation through the restructuring will enable Cell C to assume full responsibility for its postpaid customer base.The restructuring will include the transfer of 100% of the shares in CEC to Cell C in exchange for Cell C equity shares; the exchange will occur at a price of R2.15bn.The restructuring\u00a0 transactions also include the transfer of airtime with a sales value of between R7.3bn and R7.5bn from TPC to Cell C in exchange for Cell C shares.TPC will also acquire the shares in Cell C held by SPV4 and SPV5, these SPV’s relate to historical financing arrangements, in settlement of the debt obligations of those to TPC.BLT will also ensure that Cell C management had incentive structures in place as part of a listing. The listing proposal remains subject to shareholder, regulatory, and other approvals.BLT Joint-CEO Mark Levy has said previously that apart from other benefits for both groups, such as giving Cell C access to broader capital markets, the listing effectively allows Cell C to repay what it owes BLT. Cell C had defaulted on loans in 2020, and BLT injected funds into the operator to get it back on its feet.BUSINESS REPORT<\/p>","protected":false},"author":1,"featured_media":112691,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-193393","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-builder"],"_links":{"self":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/193393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/comments?post=193393"}],"version-history":[{"count":1,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/193393\/revisions"}],"predecessor-version":[{"id":193394,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/posts\/193393\/revisions\/193394"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media\/112691"}],"wp:attachment":[{"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/media?parent=193393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/categories?post=193393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.premium-partners.net\/fr\/wp-json\/wp\/v2\/tags?post=193393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}