The company issued a statement on the JSE’s stock exchange news service late on Thursday in response to an open letter published by Cell C CEO Douglas Craigie Stevenson that sent Blue Label’s shares into a tailspin.
Read: Trouble at Cell C
In the letter, Craig Stevenson said Cell C had appointed law firm Bowmans to investigate “any parts of the business where we suspect that there may be irregular business practices”. It has also hired hired PwC to do a full procurement audit and review of Cell C’s internal processes as well as Deloitte to assist in “optimising business processes”.
Cell C’s management and board are ensuring that Cell C is sufficiently geared to run the business as required
In a move clearly aimed at calming investor nerves, Blue Label said in its statement that “no material concerns or issues have been uncovered as a result of Cell C’s new management conducting a deep dive into the business practices of Cell C in a drive for efficiencies”.
“This is an ongoing process and shareholders will be updated as progress is made,” it said. “In anticipation of the transaction resolving the liquidity position at Cell C, and launching the new, improved operating model, Cell C’s management and board are ensuring that Cell C is sufficiently geared to run the business as required. Blue Label and the Buffet Consortium (which is planning to invest in Cell C) are fully apprised of Cell C’s drive to effectively and efficiently utilise all of its network, technology and human capital assets, and are supportive of management’s initiatives.”
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