JSE-listed Blue Label Telecoms has moved to reassure investors about the concerns about Cell’s prospects.
Blue Label Telecoms, the biggest shareholder in Cell C, said that no material concerns or issues have been uncovered as a result of Cell C’s new management conducting a deep dive into the business practices of Cell C in a drive for efficiencies.
“This is an on-going process and shareholders will be updated as progress is made.”
On Wednesday, it emerged that Cell C’s management has finally accepted (publicly) that the company faces financial and other challenges.
The struggling mobile phone operator is planning to implement a new business plan which will simplify its business model, which will include a second recapitalisation of the company.
The company has appointed Deloitte as independent financial restructuring advisors, and Bowmans attorneys to “investigate any parts of the business where we suspect that there may be irregular business practices”.
“In anticipation of the transaction resolving the liquidity position at Cell C, and launching the new, improved operating model, Cell C’s management and board are ensuring that Cell C is sufficiently geared to run the business as required,” Blue Label Telecoms said in a statement on Thursday.
Blue Label and the Buffet Consortium are fully apprised of Cell C’s drive to effectively and efficiently utilise all of its network, technology and human capital assets, and are supportive of management’s initiatives, reads the statement.
“Blue Label looks forward to advising shareholders on the progress of transactions, which are currently at an advanced stage.”