Blue Label moves to appease MTN and Vodacom
3 March 2017
A day after prepaid specialist Blue Label Telecoms cemented its agreement to rescue debt-laden Cell C, it has moved to assure the investment community that there won’t be widespread changes to its contracts with MTN and Vodacom to distribute airtime or the mobile operator’s shareholding structure.
Blue Label’s joint CEO Mark Levy, said it will be “business as usual” after the recapitalisation of Cell C, which will see it inject R5.5 billion for a 45% stake in the company. The deal is expected to be a dead cert in June.
Blue Label was responding to market rumours that Vodacom and MTN would terminate their airtime distribution services with it at a time when it planned to invest in direct competitor Cell C, SA’s third-largest mobile operator.
Source: MoneyWeb 1 March 2017