Net1 backs out of Blue Label deal
2 June 2017
Net1 UEPS Technologies says it will no longer invest R2 billion in Blue Label Telecoms.
The company says in a SENS statement that it and Blue Label "have mutually agreed that Net1 SA will not subscribe for shares in Blue Label and the subscription agreement has therefore been terminated".
In October 2016, the companies announced the planned deal which would see Net1 effectively buy a 15% stake in Blue Label for R2 billion.
Net1 will, however, continue to pursue its acquisition of a 15% stake in mobile operator Cell C for a consideration of R2 billion, a deal it announced in March 2017. At the time, Blue Label, Net1, Cell C and the debt providers of Cell C entered into a binding umbrella restructure agreement which also included Blue Label acquiring a 45% stake in Cell C for R5.5 billion.
In its own SENS statement this morning, Blue Label confirmed Net1 would no longer invest in the company and would "confine its investment to a total amount of R2 billion, which will be invested into Cell C". Read the full article in ITweb here.