The group, which owns 45percent of Cell C, closed 9.66percent lower yesterday at R4.58 a share on S&P’s technical research report, which underscored the need for Cell C to move faster with its recapitalisation to bring the business back to sustainability.
Blue Label said in February that the Buffet Consortium, backed by billionaire Jonathan Beare, would become a minority shareholder in Cell C to improve its liquidity and competitiveness. Yesterday, a Blue Label spokesperson said the company would update the market on the Buffet Consortium deal shortly.
“Announcements regarding further progress on the Buffet Consortium deal and the further ‘income generating’ deal are imminent,” said the spokesperson. Blue Label became Cell C’s majority shareholder through a R5.5billion investment to recapitalise the company in 2016.
However, Cell C’s heavily-geared balance sheet is one of Blue Label’s biggest risks, said analysts.