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Blue Label Set to Take Over Cell C Soon

February 23, 2024

There has been an intriguing development in the telecom sector. Within the next six months, a versatile company, Blue Label, that currently owns nearly 50% of Cell C, hopes to acquire an additional 4.04% of the company. Blue Label Telecoms’ subsidiary, The Prepaid Company, would be used to carry out this acquisition.

They must first receive the go-ahead from regulatory organizations like the Competition Commission (CompCom) and the Independent Communications Authority of South Africa (ICASA).

Blue label

Cell C Takeover by Blue Label Might Not Happen

Blue Label’s co-CEO, Brett Levy, announced the company’s most recent financial report, saying they anticipate receiving approval from both parties in the upcoming half-year.

Nevertheless, not everyone involved has embraced this plan. In particular, CellSAf, a significant shareholder in Cell C that holds 25% of the company’s shares, has expressed its displeasure, claiming that they were not consulted regarding this possible acquisition. This could put an end to the plan by major shareholder Blue Label Telecoms and mobile operator Cell C to transfer the network’s operating license and operating frequency rights to a Blue Label subsidiary.

Blue Label CO-CEO

Levy said, “At Blue Label, we are operating in the same manner as any other business. We have applied to take ownership of a subsidiary. After we regain control, Cell C will be exactly as you know it the very next day.” 

He is still optimistic that he can successfully navigate the regulatory procedures, despite the pushback. He did admit, though, that this acquisition is not certain until it is given formal approval.

Access Control Over Cell C

Under Blue Label’s ownership, Cell C will carry on as usual, assuming the acquisition goes through as scheduled. Jorge Mendes, the CEO of Cell C, clarified that they do not intend to give Blue Label complete control over the business as a result of this possible deal. Rather, the business continues to be actively involved, especially with its efforts to stabilize its finances.

The South African telecoms company considered staff reductions earlier in January in an effort to reduce expenses and increase operational flexibility. This idea came up in the midst of the many difficulties the business was having.

Changes To Expect From This Takeover

The company might take over Cell C, so new and creative services should be coming soon. They could offer better customer service, interesting content offerings, and upgraded data plans. Customers of Cell C may have more options and a better overall experience with these new services.

Customers of Cell C may experience some changes as a result of Blue Label’s acquisition of Cell C. Better services, fresher products, and possibly even wider network coverage could result from it.

With Blue Label taking over Cell C, pricing plans may change. They could change or add to the current packages.

They might also make investments to upgrade the network’s infrastructure, launch fresh services, and improve client satisfaction. It’s a chance for Cell C to expand and lead in the telecom sector.

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Abdullahi Kafayat
Abdullahi Kafayat

Abdullahi Kafayat is an enthusiastic writer interested in the tech world. She's a graduate of Obafemi Awolowo University and has a BSc in Chemistry. You can reach her at Kafayatabdullahi17@gmail.com.

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