Blue Label Telecoms, currently holding a 49.5% stake in Cell C, is looking to gain control of the mobile operator and introduce a new strategic investor. That’s according to Blue Label co-CEO Brett Levy.
Levy’s remarks come after Blue Label’s recent announcement that it will seek approval from the Competition Commission and communications regulator Icasa to increase its ownership stake in Cell C to over 50%.
This strategic move will grant Blue Label full control of the company for the first time.
In regards to the future of Cell C, co-CEO Mark Levy mentioned that the company will soon have a “big brother.” He stated that another investor will be joining the company.
“And it will be a value-adding investor. It will not be a money person; it will be someone who adds value in strategy,” he said. “It could be a bank or a retailer or another network, but it will be a strategic partner. And I don’t see that in five years, I see that in the next two to three years.”
Levy referred to Cell C as a crucial component within the Blue Label organization.
However, he acknowledged that Cell C requires a larger entity than Blue Label to support its growth.
Initially considering themselves the dominant force, Blue Label has now realized the need for a more substantial partner. A partnership involving both Blue Label and another party would be a favorable arrangement.