VODACOM: 12,071 +92 (+0.77%)
Consortium to take minority stake in South Africa's Cell C
(Adds more detail, context)
JOHANNESBURG, Feb 22 (Reuters) - Blue Label Telecoms
said on Friday a consortium had agreed to take a
minority stake in South Africa's third largest mobile carrier
Cell C, of which it owns 45 percent.
Blue Label, which has been trying to dig Cell C out of debt
since it purchased its stake in the carrier for 5.5 billion rand
($392.28 million) in October 2016, said the deal would help the
It named the investor as The Buffet Consortium, but did not
say who that included and Reuters was not immediately able to
establish its members. Blue Label Telecoms also did not disclose
the size of the stake or how much it would raise.
"With Buffet support the Cell C balance sheet will be
bolstered," it said in a statement.
A further detailed announcement would be made at a later
stage, it said, adding the transaction remained subject to
Blue Label said last August that Cell C, which has struggled
to compete with bigger rivals MTN and Vodacom
needed another 2.8 billion rand in funding.
It has had to defend its investment to shareholders
concerned about the cost of keeping the carrier going, prompting
an almost 65 percent fall in Blue Label's share price since the
start of last year.
($1 = 14.0206 rand)
(Reporting by Emma Rumney; Editing by Kirsten Donovan and
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.