Blue Label Telecoms’ chairman Larry Nestadt and independent non-executive director Joe Mthimunye together bought more than R3 million worth of shares on Thursday afternoon, after the stock has dropped more than 63.7 % year-to-date.
Today’s buying may be an attempt by the two top executives to shift this latest news cycle and bring confidence in the business.
Mthimunye acquired shared valued at R474, 3333. He is the member of Blue Label Telecoms’ Investment Committee, Audit, Risk and Compliance Committee, and of the Remuneration and Nomination Committee.
He has assisted in the creation and strategic development of a number of listed companies such as Capital Alliance Holdings, Super Group, Hosken Consolidated Investments, SIB Holdings, and Global Capital. He has served as board chair for each of these companies.
In the company’s latest annual report, Nestadt revealed reasons why Blue Label Telecoms’ shares have been tanking.
The stock has lost more than two-thirds of its value in the past year.
“The board and I are naturally concerned about the decline in the share price, which we believe is largely attributable to uncertainty with respect to Cell C’s turnaround strategy, current debt levels and requirements for further funding,”
“These concerns will be largely negated on the proviso that Cell C delivers on its business plan.”
The stock was trading up 0.37% at R5,44 after the news of Nesdadt and Mthimunye’s acquisition of shares.