Icasa Clears Path For Blue Label To Take Control Of Cell C

Blue Label's share price has moved strongly higher in recent days, possibly because the news leaked into the market that the transfer of the licences had been approved.

An Icasa spokeswoman confirmed to TechCentral on Thursday that the regulator had approved the licence transfers a spokeswoman for Cell C also confirmed the transfers had been given the green light.

Currently, Blue Label has a non-controlling 49.5 stake in Cell C but is moving to take control of the company, which it rescued through a series of recapitalisations aimed at bolstering the troubled companys balance sheet.

Under new leadership, led by CEO Jorge Mendes, Cell C appears to be on the mend, offering potential upside to Blue Label, whose share price has underperformed for years because of its investment in the operator.

At Icasa hearings last September, Cell C said its application to transfer the licences to Blue Label subsidiary The Prepaid Company TPC did not represent a 'stripping of assets" by Blue Label as some stakeholders, including Cell C's empowerment shareholder CellSAf, had claimed.