South African brothers, Brett and Mark Levy, plan Cell C listing

Blue Label Telecoms, the South African technology group led by brothers Brett and Mark Levy, is preparing to spin off and list mobile network operator Cell C on the Johannesburg Stock Exchange.

The move comes after the company reported a $140.6 million profit, boosted by Cell C’s long-awaited turnaround and steady growth in its digital distribution and fintech businesses. By listing Cell C separately, Blue Label aims to give both companies stronger balance sheets and room to operate without the weight of heavy debt.

Cell C spin-off targets debt-free future

Announcing the plan on Monday, Blue Label said it will create a new holding company, Cell C ListCo, for its stake in the operator. As part of the restructuring, Cell C will issue R3.7 billion ($210 million) in new shares to settle debt, with additional share-for-debt and asset swaps expected ahead of the IPO. Blue Label, which currently owns 49.53 percent of Cell C, is also seeking approval to raise its stake to 53.5 percent.

Joint Chief Executive Mark Levy said the steps would put Cell C on a stronger financial base while clearing what it owes Blue Label. “We will fix the balance sheet; we will split Cell C out of Blue Label,” he said, noting the group’s commitment to finally bringing the operator to market.

After the listing, Blue Label’s investment arm, The Prepaid Company, will retain at least 26 percent of Cell C ListCo, while management will be granted a 4.5 percent stake at no cost under a new incentive plan. The IPO still requires shareholder and regulatory clearance.

Blue Label’s resurgence under the Levy brothers

Founded in 2001 by Brett and Mark Levy, Blue Label started as a small prepaid airtime distributor in Gauteng and has grown into one of South Africa’s leading digital transaction service providers. The brothers, who hold nearly 19 percent of the company, continue to guide its expansion across prepaid services and fintech.

For the year ended May 31, 2025, Blue Label’s total assets rose 30.6 percent to R19.8 billion ($1.12 billion), while retained earnings jumped more than sevenfold to R2.82 billion ($159.2 million). The results were boosted by the reversal of historic Cell C impairments, the recognition of previously unrecorded profits, and growth in its core businesses.

With Cell C’s turnaround taking hold, Brett and Mark Levy believe the spin-off and listing will not only secure the operator’s future but also strengthen Blue Label’s own position in South Africa’s telecoms and fintech markets.