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South Africa’s third largest mobile network Cell C could join its rivals – Vodacom, MTN and Telkom – in being listed on the Johannesburg Stock Exchange in future.
This is according to Brett Levy, the joint CEO of telecoms distributor Blue Label, who today announced his company’s successful bid to snap up a 45% stake in Cell C for R5.5bn.
Shareholders gave the Levy brothers and their company the green light to acquire the stake as part of a recapitalisation plan that reduces Cell C’s net borrowings to below R6bn.
Time will tell if the deal is a smart move, especially amid an increasingly tight telecoms market where operators’ traditional voice revenue is under pressure. For now, investors and traders are circumspect with Blue Label down just under 1% in trade by midday today on the JSE.