INTERIM RESULTS
Blue Label wants to add services for Cell C users
Joint CEO Brett Levy says there is no talk of termination of the telecoms company’s contract with Vodacom
Blue Label Telecoms plans to integrate some of its products with those of Cell C in a bid to expand the network operator’s portfolio and introduce new services, such as mobile money, to its 28-million subscribers. The JSE-listed prepaid airtime distributor has reached an agreement to buy a 45% stake in Cell C for R5.5bn. Speaking after the release of half-year results, Blue Label joint CEO Mark Levy said on Tuesday that Cell C provided value for the group and that small operators generally offer greater margins. The group was positive it would make a return on its investments and "extrapolate value out of the company." On Monday Blue Label announced a revised deal with the introduction of a new investor that has proposed paying R2bn for a 15% stake in Cell C. The announcement also includes an agreement that was reached with Cell C’s debtors to convert their debt into equity. The deal has come under heavy criticism from Cell C’s black equity partner, CellSaf, which has threatened leg...
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