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BLUE LABEL TELECOMS LIMITED - Update on Cell C and cautionary announcement

Release Date: 07/08/2019 15:15
Code(s): BLU     PDF:  
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Update on Cell C and cautionary announcement

Blue Label Telecoms Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/022679/06)
Share code: BLU ISIN: ZAE000109088
(“Blue Label” or the “Company”)


Update on Cell C and Cautionary Announcement


Blue Label shareholders are advised that Cell C Ltd (“Cell C”) and MTN South Africa (“MTN”) have concluded a detailed
term sheet regarding a national roaming agreement. This agreement will result in substantial cost-savings for Cell C by
reducing network and capex spend through an extensive roaming arrangement. This agreement is mutually beneficial to
both parties. The parties are now negotiating a long form agreement that will detail the principles set out in the term sheet
(“the proposed transaction”).


Shareholders are referred to the SENS announcement released by Blue Label on the JSE Limited (“JSE”) on 22 February
2019, in which the Company announced that Cell C has concluded a binding term sheet with The Buffet Consortium (“Buffet
transaction”). The Buffet transaction forms part of the Cell C recapitalisation process and is progressing well.


The implementation of the proposed transaction between Cell C and MTN, as well as the recapitalisation, could have a
material impact on the price at which Blue Label shares trade on the JSE. Accordingly, Blue Label shareholders are advised
to exercise caution when dealing in their Blue Label shares.


Please contact Charl Slabbert - +84 777 6747, cslabbert@cellc.co.za - for any queries relating to Cell C and Nicola White
– +27 81 444 9999, nicolaw@blts.co.za – for any queries relating to Blue Label.


By order of the board

Sandton
07 August 2019

Financial Adviser and Sponsor
Investec Bank Limited

Legal Adviser to Blue Label
Werksmans Inc

Date: 07/08/2019 03:15:00
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