JOHANNESBURG – Blue Llabel Telecommunication's share price nosedived in intraday trade on Thursday as the markets baulked at its last-ditch effort to clear debts via an asset sale.
The telecoms group posted a headline loss per share of 312.49 cents and a core headline loss of 304.77c for the year ended May.
The company attributes the losses to mobile network subsidiary Cell C’s trading losses, impairment of its property, plant and equipment and the impact of a de-recognition of its deferred tax asset and the impairment of Blue Label’s total investment therein.
Blue Label owns a 20 percent stake in Cell C, which it acquired for R5.5 billion in 2017. It added that an impairment of its total investment in the Oxigen India group also contributed to losses.
The group's joint chief executive, Bret Levy, was at pains to assure shareholders that Cell C was not an albatross around its neck.