JSE-listed Blue Label Telecoms has issued a cautionary, advising shareholders to continue to exercise caution when dealing in their Blue Label shares amid a transaction that could have a material impact on its JSE share trades.
This followed the August 26, 2021, announcement that Blue Label’s wholly owned subsidiary The Prepaid Company Proprietary Limited concluded a term sheet for an airtime purchase transaction with Investec Bank, First Rand Bank, acting through its Rand Merchant Bank division, and other financiers.
The proceeds are intended to be used for the recapitalisation of Cell C, in which Blue Label has a 45% shareholding.
The transaction remains subject to the conclusion of all legal documentation and fulfilment of all conditions precedent under such legal documentation.