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

Blue Label Telecoms the largest distributor of prepaid airtime and data in South Africa, will pay 5.5 billion rand ($400 million) for a 45 percent stake in debt-laden mobile firm Cell C Ltd, it said on Wednesday.

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.

For Cell C, the deal is part of its efforts to pay down debt which forced it into a restructuring deal with bondholders in 2014, involving pushing back the maturity of some of its short-dated borrowing to July 2018.

Read more: South Africa’s Blue Label pays $400 mln for Cell C stake | Reuters