Blue Label restructuring involving Cell C and Net1 ‘on track’
The deal could be delayed at the competition authorities as public interest issues are extensively interrogated
Blue Label Telecommunications informed shareholders on Tuesday that plans for the completion of a restructuring involving Cell C and Net1 were on track for completion at end-June. But one competition lawyer said the deal could be delayed at the competition authorities as public interest issues are extensively interrogated. A company spokesman said he was not aware of any effect on the deal from the controversy around Net1 relating to the South African Social Security Agency (Sassa) contract. The proposed deal, which looks set to create a substantial cellphone-based platform for the sale of consumer and financial products, was announced at the end of February before the Sassa-related controversy hit Net1. In early March, Net1 emerged as the mystery buyer of a 15% stake in Cell C. This followed an announcement in October 2016 that Net1 was acquiring a 15% stake in Blue Label for R2bn. In turn, Blue Label is acquiring a 45% stake in Cell C. The combined transactions are designed to red...
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