UPDATE: No ICASA approval needed for Cell C deal, says Blue Label

24 February 2017

Mergers, Acquisitions and Financial Results

UPDATE

What we reported in this story was based on the information received from Blue Label's head of investor and media relations. However, it has since been brought to our attention that "Blue Label will seek all necessary regulatory consents required – be it from ICASA and any other regulatory bodies."

Blue Label Telecoms says it does not need approval from the Independent Communications Authority of SA (ICASA) to buy a 45% stake in Cell C, despite ratings agency S&P's recent warning that ICASA could limit Blue Label's use of Cell C's spectrum.

"Uncertainty over which potential buyers could emerge and whether ICASA could restrict spectrum use makes Cell C's spectrum assets difficult to value," S&P said last week when it downgraded Cell C's long-term corporate credit rating from 'SD' (selective default) to ‘D' (default) after the mobile network missed an interest payment.

However, Blue Label's head of investor and media relations, Michael Campbell, told ITWeb the group believes this is "factually incorrect" and that neither ICASA's consent nor approval is required for the deal to go ahead. He adds there is no need for Competition Commission approval, as there will be "no change of control at Cell C". Read the full story on ITWeb here:

Source: ITWeb