Blue Label Telecoms, holding a 49.5% stake in South African telecom operator Cell C, is making strides to take control of the company through its subsidiary, The Prepaid Company (TPC). Blue Label Telecoms specializes in providing innovative technology for mobile commerce in South Africa and other emerging markets.
As part of the acquisition efforts, TPC has submitted applications to the communications regulator ICASA seeking approval for the transfer of Cell C's spectrum licenses to TPC. Additionally, applications have been filed with the country's Competition Commission.
Blue Label, via TPC, is in the process of acquiring an additional 4.04% stake in Cell C, surpassing the 50% ownership threshold. In late August, local news outlet TechCentral reported Blue Label's agreement to assume control of Cell C, and there are indications of potential involvement by a new strategic investor, although details about the investor and the timeline remain unclear.
Despite less-than-encouraging financial results for 2021, 2022, and the first three quarters of 2023, Cell C's management remains optimistic about the company's ability to rebound. They emphasized that, within their operational framework, Cell C will maintain control of its spectrum and continue operating as a mobile network operator, providing services to its customer base.