
<p><em>Early this morning media reported that Cell C had appointed Bowmans to investigate any parts of the business where the mobile operator suspects that there may be irregular business practices and hired PwC to do a full procurement audit and review of its processes. As a result Blue Label&#8217;s share price plunged by almost 13 percent to R3.40. Blue Label holds 45% stake in Cell C. Below is the letter on which the reports were based.</em>   </p>



<p>By Douglas Craigie Stevenson, Chief Executive Officer (Interim), Cell C </p>



<p>I was appointed in March 2019 as the interim CEO with the clear mandate from the Cell C  Board to right-size and optimise the business.  There was an acknowledgement that the company faces, and continues to face, financial and other challenges.   </p>



<p>In an intensive 120-day period our new leadership team has a clear direction and have focused on ways to:   Execute and implement a new business plan, aimed at simplifying the business model;  Pursue a recapitalisation to optimise the capital structure;   Extract greater value from our existing roaming agreement; and   Optimise network revenue and usage. </p>



<p>The goal for Cell C is to become significantly better focused on operational performance, sound business ethics and accountability throughout the business. </p>



<p>Our efforts to improve the financial management of the business were enhanced in December 2018 with the board appointment of a new CFO, Zaf Mahomed, who has extensive business and finance experience. The financial results for Q2 2019 are showing some promising improvements to the bottom line, based on the measures taken since March 2019 to right-size the business.  We have also appointed Deloitte as independent financial restructuring advisors to assist  in optimising business processes.  The company continues to face real challenges and we are in active discussions with our stakeholders with a view to achieving a secure financial position.  In the interim, I can report the following:  </p>



<ol class="wp-block-list"><li>We have implemented a wide range of initiatives across the business to improve and meet the requirements of the King IV Code of Corporate Governance, including driving greater transparency to the board. The executive directors have had positive engagements with all major stakeholders.    </li><li>We have appointed attorneys Bowmans to investigate any parts of the business where we suspect that there may be irregular business practices and have also hired PwC to do a full procurement audit and review of our processes.  </li><li>The new executive team, along with our new management committee is completely aligned with Cell C’s priorities and has committed to ensure changes that are necessary to deliver on the new business strategy. </li><li>We have implemented significant austerity measures and have cut costs which do not contribute to revenue generating activities, including a review of all contracts to ensure alignment with business priorities and a hiring freeze.  </li><li>We have engaged in discussions with our staff and the company’s union in an open and      transparent manner and adhering to all legal requirements.  To this end we have: &#8211; Appointed a new HR Executive, Juba Mashaba, with strong human resources and industrial relations expertise and Juliet Mhango in the role of Human Capital Development and Transformation Executive; &#8211; Focused on stabilising relationships with our labour force, and implemented a signed recognition agreement and formal engagement structures;  &#8211; Actively communicated with employees on the direction and state of the business;  &#8211; Re-emphasised that non-compliance with policies and procedures will not be tolerated;   &#8211; Taken meaningful steps to inculcate a transparent performance culture aligned with the business strategy; &#8211; Cell C has a zero-tolerance policy towards illegal or unethical activity and have encouraged employees to use the independent whistle-blowers service to anonymously report irregularities or illegal activities. </li></ol>



<p>We are also strengthening our board with independent non-executive directors in line with the King IV Code of Corporate Governance. </p>



<p>I want to emphasise that Cell C is strategically positioning itself and we are using our best efforts to be a strong participant in the industry, I firmly believe we are on the right track.   </p>



<p>Yours sincerely</p>



<p>Douglas Craigie Stevenson Chief Executive Officer (Interim)</p>


Open letter by Cell C’s new CEO Douglas Stevenson

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<p>Technology company Blue Label Telecoms has had a difficult year, with almost 30 per cent of its market value being wiped out in the first quarter. But Co-Founder and CEO Mark Levy, told CNBC Africa’s Kopano Gumbi why a bad share price doesn’t mean a bad business.</p>


Blue Label’s Mark Levy on why bad share price doesn’t mean a bad business

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<p>Driven by solid organic growth in its distribution business- Blue Label Telecoms says full year headline earnings per share rose by 18 per cent to just under 118 cents while gross profit increased 19 per cent to R2.2 billion.</p>


Organic growth drives up Blue Label Telecoms’ full-year revenues

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<p>Blue Label Telecoms is now a 45 per cent shareholder of network operator, Cell C. The stake is through its subsidiary, The Prepaid Company. Joining CNBC Africa is Mark Levy, joint CEO of Blue Label Telecoms.</p>


Blue Label Telecoms completes 45% stake acquisition of Cell C

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<p>Blue Label Telecoms is set to buy 3G Mobile, mobile device supplier for R1.9 billion to expand its existing business in that field. Mark Levy, founder and co-CEO of Blue Label Telecoms joins CNBC Africa for more.</p>


Blue Label to buy 3G Mobile for R1.9bn

<p>South African telecommunications firm Blue Label Telecoms said on Tuesday it would buy a mobile device supplier for 1.9 billion rand ($148 million) to expand its existing business in that field.</p>
<p>Blue Label, the largest distributor of pre-paid voice and data airtime in South Africa, said it would buy shares in unlisted 3G Mobile Proprietary Limited in two stages with its subsidiary, The Prepaid Company Proprietary, initially acquiring 47.37 percent for 900 million rand followed by 52.63 percent to be acquired for 1 billion rand.</p>
<p>Blue Label said 3G Mobile would be used to expand into the financing and supply of mobile devices, handsets and allied products to distribute into the low cost smartphone market.</p>
<p>&#8220;Both of these functions supplement Blue Label&#8217;s strategic objectives to provide value added services to both Cell C and its own customer base. 3G Mobile provides the ideal platform to consolidate Blue Label&#8217;s low cost and certified pre-owned mobile handset divisions into a consolidated group,&#8221; the company said in a statement.</p>
<p>South Africa&#8217;s third largest mobile phone company, Cell C, and its creditors agreed a deal where Blue Label would pay 5.5 billion rand for a 45 percent stake in the debt-laden mobile firm.</p>
<p>The deal will give Blue Label a share of profits on a product it distributes as well as a major stake in a company facing a consumer backlash due to slow network speeds.</p>
<p>3G Mobile, which is one of Africa’s largest distributors, and financiers, of mobile devices and handsets, operates in 8 African countries.</p>
<p>By 0758 GMT, shares in Blue Label were treading water at 15.15 rand following the announcement.</p>
<p>($1 = 12.8401 rand)</p>
<p>(Reporting by Tanisha Heiberg; Editing by Mark Potter)</p>


South Africa’s Blue Label Telecom to buy mobile device supplier

<p>South African distributor of prepaid airtime Blue Label Telecoms will pay 5.5 billion rand ($400 million) for a 45 percent stake in debt-laden mobile phone group Cell C Ltd, it said on Wednesday.</p>
<p>The deal is part of Cell C&#8217;s efforts to pay down debts which last year forced it into a restructuring with bondholders involving a three-year maturity extension to July 2018.</p>
<p>Following Blue Label&#8217;s deal, Cell C will also issue new shares to staff, senior management and existing shareholders to help to reduce it borrowings to a maximum of 8 billion rand, Blue Label said.</p>
<p>Founded in 2001 by Saudi Arabia&#8217;s Oger Telecom, Cell C has struggled to compete against established players Vodacom and MTN Group.</p>
<p>($1 = 13.7580 rand)</p>
<p> </p>


Blue Label Telecoms

Open letter by Cell C’s new CEO Douglas Stevenson

Blue Label’s Mark Levy on why bad share price doesn’t mean a bad business

Organic growth drives up Blue Label Telecoms’ full-year revenues

Blue Label Telecoms completes 45% stake acquisition of Cell C

Blue Label to buy 3G Mobile for R1.9bn

South Africa’s Blue Label Telecom to buy mobile device supplier

South Africa's Blue Label Telecoms pays $400 million for Cell C stake

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Blue Label Telecoms

Open letter by Cell C’s new CEO Douglas Stevenson

Blue Label’s Mark Levy on why bad share price doesn’t mean a bad business

Organic growth drives up Blue Label Telecoms’ full-year revenues

Blue Label Telecoms completes 45% stake acquisition of Cell C

Blue Label to buy 3G Mobile for R1.9bn

South Africa’s Blue Label Telecom to buy mobile device supplier

South Africa's Blue Label Telecoms pays $400 million for Cell C stake

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