Blue Label heads to bourse

By Kimberly Guest for Blue Label Telecoms
Johannesburg, 29 Oct 2007

Blue Label Telecoms, a widespread telecommunications investor, will list on 14 November.

The company`s pre-listing statement says it can sell a maximum value of R1 billion worth of shares, priced between R5.75 and R6.75 per share, in a private placement.

This includes a preferential placement to selected Blue Label Group business associates and individual investors for R200 million in cash. Additionally, it is offering a private placing to "qualifying institutions" of a maximum value of R376 million shares at the same price range.

No iBurst?

The company`s pre-listing statement makes no mention of its shareholding in iBurst.

Last year, the company formed part of a local consortium that took a 40% stake in iBurst, for an undisclosed amount. Alan Knott-Craig Jnr, son of Vodacom`s CEO, became MD on Blue Label`s recommendation.

At the time of the transaction, Blue Label Telecoms declined to comment. Company co-founder Brett Levy told ITWeb sister publication iWeek: "We are a private investment company that wishes to remain just that - private."

The company says it will be restructured prior to the listing. It says it will acquire the majority of the outside interests in the Blue Label Group companies. Additionally, it will dispose of the "non-core assets" held by the Blue Label Group, which will not form part of the listing.