Blue Label Prepares Cell C Listing In South Africa

South Africa's Blue Label Telecoms is undertaking a major restructuring to facilitate the unbundling and potential listing of mobile operator Cell C on the Johannesburg Stock Exchange (JSE). Blue Label currently holds a non-controlling 49.53% stake in Cell C and is seeking to increase this to a controlling 53.5%, with the aim of enabling Cell C to operate independently and access capital markets. The restructuring involves converting R3.7 billion of debt held by Blue Label’s subsidiary The Prepaid Company into equity shares, transferring airtime assets valued between R7.3 billion and R7.5 billion, and consolidating shares from Comm Equipment Company into Cell C. This listing would allow investors to value Cell C separately from Blue Label's prepaid distribution business and is expected to enhance shareholder value by reflecting Cell C's successful turnaround strategy, which includes recapitalizations, tower sales, and network roaming agreements with MTN and Vodacom. The process remains subject to approvals from boards, shareholders, regulators, and favorable market conditions. Blue Label also plans to offer some shares to qualifying investors post-listing, with proceeds potentially used to clear debt or invest in growth initiatives.