In late 2015, when pre paid technology specialist Blue Label Telecoms proposed a strategic re capitalisation of SA’s third-largest cellular services provider, Cell C, the market’s initial reaction was to place an investment call on hold.Some initial trepidation in the market was probably justified. The proposed recapitalisation — first mooted as a R4bn capital injection in exchange for a 35% stake in Cell C — was a big step for Blue Label, which has over the years built a compelling cash-generative business model by successfully managing a high volume-low margin operation in the prepaid services niche.Cell C, by all accounts, was straining under an excessive debt load. Though financial information has not been readily available, anecdotal evidence (which has not been disputed) suggested Cell C was dangerously debt laden and that its Saudi-based controlling shareholder Oger Telecom had little enthusiasm to pump more capital into the business.But the scoreboard will show that Blue Lab...

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