Cell C parent company Blue Label Telecoms (BLU) has announced its plan to list the mobile operator on the Johannesburg Stock Exchange (JSE), marking a major milestone in the company’s ongoing turnaround strategy.
The announcement follows earlier indications that the company was preparing for a listing. Prior to this step, Blue Label embarked on another restructuring process, settling all of Cell C’s debt and converting it into equity.
Once restructuring is complete, Blue Label’s subsidiary, The Prepaid Company (TPC), will hold a significant majority of shares in Cell C. A portion of these shares — about 4.5% — will be transferred to the Cell C executive team.
As part of the listing, TPC plans to sell shares to raise approximately R7.7 billion, including an overallotment option of R500 million. The offer will also allocate around R2.4 billion worth of shares to a Broad-Based Black Economic Empowerment (B-BBEE) vehicle known as the BEE SPV.
“TPC intends to utilise the proceeds it receives from the sale of shares to strategically enhance its financial position,” Blue Label said in a statement.
The funds raised will be used to settle interest-bearing debt, pay dividends to shareholders, and support working capital requirements. Importantly, Cell C itself will not receive proceeds from the sale of shares by TPC.
Both Cell C and TPC reaffirmed their commitment to South Africa’s transformation agenda, ensuring that at least 30% of ownership remains in the hands of historically disadvantaged persons. The BEE SPV will play a key role in maintaining this structure at the time of listing.
“The offer is expected to include the overallotment option, which is customary for transactions of this nature, to facilitate stabilisation activities,” Blue Label added.
The listing remains subject to JSE approval and other customary conditions, including shareholder spread and free-float requirements.
Cell C CEO Jorge Mendes described the listing as a “significant and exciting step” for the company.
“It will enable the group to streamline its balance sheet, reinforce its growth strategy and strengthen its competitive positioning,” Mendes said. “The listing will elevate the Cell C brand, enhance access to capital, instil public transparency, and increase our profile with all stakeholders.”
The move signals a new era for Cell C, positioning the telecom operator for growth, stability, and renewed investor confidence in South Africa’s competitive mobile sector.
