Blue Label Telecom plans to list Cell C, share price rises by 11.18%

BLUE Label Telecom investors cheered news of plans to list subsidiary Cell C on the Johannesburg Stock Exchange, and the share price increased by 11.18% on Friday afternoon.

- EDWARD WEST

Blue Label's management said the proposal to list the mobile telecommunication company, which has only recently been restored to financial stability, arose from their desire to restructure Blue Label's investments and unlock value for shareholders.

Blue Label's share price traded 11.18% higher by early Friday afternoon on the JSE, a price that is already more than double the R4.31 that it traded at a year before.

The parent of Cell C said it is considering options and initiatives to unlock value for its shareholders. Over the past 24 months, a strengthened Cell C executive team had returned Cell C to a strong growth trajectory, putting it on a sustainable growth and profitability path going forward.

The restructure will involve the separation and potential future listing of Cell C on the Prime Segment of the Main Board of the JSE.

Various other transactions will be considered, aimed at optimising Cell C's capital structure and balance sheet in preparation for a listing.