Cell C CEO Jorge Mendes. (Photograph by Nicola Mawson)
Blu Label Unlimited, formerly Blue Label, has officially confirmed to shareholders that Cell C will be listing as a separate entity on the JSE, simultaneously creating an empowerment vehicle worth R2.4 billion.
Cell C is expected to list towards the end of the year, ITWeb sources have indicated.
After a complicated restructuring process ahead of the listing, Cell C’s listed shares will be issued to prospective shareholders via its The Prepaid Company (TPC) unit – which was the vehicle through which Blu Label Unlimited (BLU) acquired the company.
This will run concurrently with a share sale to selected prospective investors in a transaction intended to raise R7.7 billion. Of this, R2.4 billion in proceeds will go towards creating a broad-based black economic empowerment (B-BBEE) company that will hold 30% in Cell C.
“To ensure the group continues to meet its regulatory obligations to maintain a 30% shareholding by historically disadvantaged persons, TPC is taking deliberate steps to ensure the requisite B-BBEE ownership structure is in place at the time of listing,” the announcement to shareholders said.
Cell C’s restructuring process will enable BLU and Cell C to separate, while also simplifying Cell C’s capital structure, BLU said in a statement to shareholders this morning. BLU bought a 45% stake in the operator for R5.5 billion in 2017 and achieved its goal of acquiring a controlling shareholding on 5 September.
TPC will use the rest of the money to pay down debt and pay out a dividend to shareholders. This, BLU says, reflects its “commitment to delivering value to its investors”.
BLU co-CEO Mark Levy previously told ITWeb that a Cell C initial public offering will allow the operator to repay what it owes Blue Label, giving it cash to pay dividends, grow, or further develop its structure. Several previous CEOs have unsuccessfully tried to list the company.
As of May 2025, Blue Label’s exposure to the operator is R3.1 billion, although it has made provision for loss allowances. Any left-over money will go towards meeting working capital requirements, enabling TPC to capitalise on trading opportunities.
Cell C CEO Jorge Mendes this morning said: “The decision to pursue a listing on the JSE marks a significant and exciting step in Cell C’s growth story.”
Mendes added that, while Cell C is already owned by a listed entity and has operated within that framework, the separate listing will enable it to “reinforce its growth strategy and strengthen its competitive positioning across business segments”.
Cell C reported a return to net profit and broad-based growth across the business for the year to May, posting a profit before tax of R280 million – a swing of over 200% from the prior year’s R9 million.
