Prior to the listing, BLU embarked on yet another restructuring of the company which involved settling all Cell C\u2019s debt and swapping it for equity.<\/p>\n\n\n\n
When the dust settles, BLU subsidiary The Prepaid Company (TPC) will hold a significant majority of the shares in the company.<\/p>\n\n\n\n
Some of these shares will be transferred to the Cell C executive team, such that they will collectively hold 4.5% of the company’s shares.<\/p>\n\n\n\n
Together with the listing, The Prepaid Company will make an offer to sell shares intended to raise approximately R7.7 billion, including an overallotment option of about R500 million.<\/p>\n\n\n\n
TPC\u2019s offer will also include an allocation of shares of up to approximately R2.4 billion to an empowerment vehicle, referred to as the BEE SPV.<\/p>\n\n\n\n
\u201cTPC intends to utilise the proceeds it receives from the sale of shares to strategically enhance its financial position,\u201d BLU label stated.<\/p>\n\n\n\n
\u201cThe proceeds raised will be allocated towards settling certain interest-bearing borrowings and other debt obligations.\u201d<\/p>\n\n\n\n
Additionally, a portion of the funds will be earmarked for dividends to shareholders. Furthermore, the remaining excess proceeds will be directed towards meeting working capital requirements.<\/p>\n\n\n\n
Cell C will not receive any proceeds from the sale of the shares by The Prepaid Company.<\/p>\n\n\n\n
\u201cCell C and TPC are deeply committed to advancing South Africa\u2019s transformation agenda through meaningful and sustainable Broad-Based Black Economic Empowerment (B-BBEE),\u201d BLU stated.<\/p>\n\n\n\n
BLU said it must also take steps to ensure it continues to meet its regulatory obligations to maintain a 30% shareholding by historically disadvantaged persons.<\/p>\n\n\n\n
It explained that the BEE SPV will help ensure that the requisite B-BBEE ownership structure is in place at the time of listing.<\/p>\n\n\n\n
\u201cThe offer is expected to include the overallotment option, which is customary for transactions of this nature, to facilitate stabilisation activities,\u201d said BLU.<\/p>\n\n\n\n
\u201cThe overallotment option will not exceed approximately 7% of the total offer size.\u201d<\/p>\n\n\n\n
BLU said the listing was subject to customary conditions for capital markets transactions of this nature, including the minimum free-float and shareholder spread requirements as prescribed by the JSE Listings Requirements.<\/p>\n\n\n\n
\u201cThe decision to pursue a listing on the JSE marks a significant and exciting step in Cell C\u2019s growth story,\u201d said Jorge Mendes, Cell C chief executive officer.<\/p>\n\n\n\n
Mendes said that while Cell Cis already owned by a listed entity and has operated within that framework, a separate listing will be big boost to the company.<\/p>\n\n\n\n
\u201cIt will enable the group to streamline its balance sheet, reinforce its growth strategy and strengthen its competitive positioning of business segments,\u201d said Mendes.<\/p>\n\n\n\n
\u201cThe listing is expected to be an enabler of our strategy, as it will elevate the Cell C brand, enhance access to capital to sustain growth, instil public transparency and market discipline, and enhance the Group\u2019s profile with all stakeholders.\u201d<\/p>\n\n\n\n
Listing planned since 2016<\/h2>\n\n\n\n![\"\"](\"https:\/\/mybroadband.co.za\/news\/wp-content\/uploads\/2025\/05\/Brett-and-Mark-Levy.jpg\")
Blue Label Unlmited co-CEOs Brett and Mark Levy<\/figcaption><\/figure>\n\n\n\nBlue Label has had plans to list Cell C since 2016, when former Cell C CEO Jose dos Santos said<\/a> the company planned to list on the JSE in the next three to four years.<\/p>\n\n\n\nDos Santos said in January 2016 that following the company\u2019s recapitalisation, the following three years would be used to position it strongly for a favourable listing.<\/p>\n\n\n\n
A month after Dos Santos made these remarks, Blue Label co-CEO Brett Levy said<\/a> that listing Cell C was a good strategy. Levy said all big operators should list due to their liquidity on the market and their profile.<\/p>\n\n\n\nHe said that a restructured Cell C offers compelling growth prospects, including listing three to four years down the line, sometime in 2019 or 2020.<\/p>\n\n\n\n
However, this planned listing did not happen as the first recapitalisation did not improve Cell C\u2019s financial situation enough to stabilise the company.<\/p>\n\n\n\n
Blue Label had to orchestrate a second recapitalisation to further reduce Cell C\u2019s debt in an attempt to turn the company around.<\/p>\n\n\n\n
In August, Cell C announced that\u00a0it reached profitability<\/a>\u00a0for the first time in the year ended 31 May 2025, achieved growth across key revenue lines, and improved operating margins compared with the prior year.<\/p>\n\n\n\n
Blue Label has had plans to list Cell C since 2016, when former Cell C CEO Jose dos Santos said<\/a> the company planned to list on the JSE in the next three to four years.<\/p>\n\n\n\n Dos Santos said in January 2016 that following the company\u2019s recapitalisation, the following three years would be used to position it strongly for a favourable listing.<\/p>\n\n\n\n A month after Dos Santos made these remarks, Blue Label co-CEO Brett Levy said<\/a> that listing Cell C was a good strategy. Levy said all big operators should list due to their liquidity on the market and their profile.<\/p>\n\n\n\n He said that a restructured Cell C offers compelling growth prospects, including listing three to four years down the line, sometime in 2019 or 2020.<\/p>\n\n\n\n However, this planned listing did not happen as the first recapitalisation did not improve Cell C\u2019s financial situation enough to stabilise the company.<\/p>\n\n\n\n Blue Label had to orchestrate a second recapitalisation to further reduce Cell C\u2019s debt in an attempt to turn the company around.<\/p>\n\n\n\n In August, Cell C announced that\u00a0it reached profitability<\/a>\u00a0for the first time in the year ended 31 May 2025, achieved growth across key revenue lines, and improved operating margins compared with the prior year.<\/p>\n\n\n\n