Today is indeed a milestone for Blue Label – 3G Mobile
‘Today is another landmark for Blue Label as the acquisition of 3G Mobile becomes effective.’
Blue Label is pleased to advise that its initial acquisition of 47.37% in 3G Mobile has become effective following the implementation of Cell C’s recapitalisation announced earlier today.
Blue Label shareholders recently granted approval to acquire 3G Mobile for R1.9 billion. 3G Mobile, through its wholly owned subsidiary, CEC, provides financing for the mobile handset element of post-paid contracts, as well as distributing high-end branded mobile handsets.
Brett Levy, joint CEO of Blue Label, says:
“The acquisition of 3G Mobile is earnings accretive from the get-go. 3G Mobile will provide a solid foundation for handset and tablet distribution in complementing our existing range of mobile products and services, now all housed under one roof, serving South Africa and beyond.”
Our existing handsets and tablets distribution business comprises both new and refurbished hardware. With the addition of 3G Mobile’s top tier branded mobile devices, Blue Label will be able to offer a complete range, from no-name/house brands right through to branded Tier 1 products, thereby catering for all types of consumers.”
Says Mark Levy, joint CEO at Blue Label:
“Our strategy takes another step forward with the acquisition of 3G Mobile. Of the R1.9 billion purchase price, R900 million was settled as to R250 million in Blue Label shares plus R650 million in cash, while the remaining 52.63% tranche will be settled in R1 billion cash.
“The acquisition of 3G Mobile aligns perfectly with Blue Label’s strategy of provisioning products and services to any channel and any customer, through a myriad of payment options.
“We welcome 3G Mobile to the Blue Label family and look forward to its contribution in transforming our business model into a vertically integrated telecoms Group.”