Blue Label’s share price fell 2.4% to close at R18.49 on Thursday as the company’s equity deal with Cell C came under regulatory scrutiny. The Independent Communications Authority of SA (Icasa) is seeking legal advice on the deal, which Cell C has filed as a notification of change of ownership. Icasa said its preliminary view was that the deal ought to have been filed as an application for change of control. If the deal is filed as such, it is likely to be opened for public comment. This may further delay the conclusion of the deal that has been on the cards for about two years. Blue Label and Net1 have bought 45% and 15% stakes in Cell C, respectively in a move aimed at saving the ailing mobile network operator. Icasa said it was still in talks with Cell C about the “apparent noncompliance with the legislative provisions”. But Cell C said it had received extensive legal advice and was “comfortable” that the recapitalisation did not amount to a transfer of control that required app...
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