Blue Label Telecoms restructures Cell C, eyes JSE listing

Blue Label Telecoms (BLT) announced a binding agreement for the pre-listing restructuring of Cell C, aiming to optimize its capital structure and facilitate a separate JSE listing. This restructure involves converting ZAR3,676,852,511 in claims held by The Prepaid Company (TPC) into Cell C equity shares. TPC will also transfer all shares in Comm Equipment Company (CEC) to Cell C for ZAR2,150,000,000 in Cell C equity shares. Additionally, TPC will dispose of Cell C airtime with a sales value of ZAR7,300,000,000 to ZAR7,500,000 to Cell C in exchange for Cell C equity shares.

The restructure also includes TPC acquiring Cell C shares from SPV4 and SPV5 in settlement of their debt obligations, with purchase prices of ZAR287,925,000 and ZAR275,000,000, respectively. Johannes Sanyana Mthimunye resigned as an independent non-executive director of Blue Label Telecoms, effective August 29, 2025, to focus on his role as independent chairman of the board of Cell C, aligning with the restructuring and potential listing. The pre-listing restructuring and a subsequent sell-down are categorized as Category 1 transactions, requiring shareholder approval.

BLT withdrew its cautionary announcements, confirming that shareholders no longer need to exercise caution when dealing in Blue Label securities. The Cell C listing remains subject to market conditions, shareholder, and regulatory approvals. The pre-listing restructuring is expected to deliver significant benefits for BLT, its shareholders, and Cell C, enabling independent valuation and strategic focus for each business.