CAPE TOWN – JSE-listed Blue Label's share price soared 12 percent on Tuesday after media speculation mounted in media that China Mobile was in talks to acquire, South African mobile company and one of the top 4 leading network providers in the country, Cell C.
A sale of Cell C would benefit Blue Label, whose investment in the company has been a massive liability.
However, Cell C said in a statement on Thursday: "We cannot comment on behalf of China Mobile who may be in negotiations with various mobile operators around the world. Cell C will keep the door open to any conversations that will assist the company’s future viability".
The embattled operator has been prone to takeover speculation with rumours that Telkom was eyeing a takeover earlier this year, which amounted to hot air. Cell C has lost ground to rivals MTN and Vodacom.
In June ratings agency S&P Global Ratings downgraded Cell C to selective default.