Report
Ian Brink
EUR 477.90 For Business Accounts Only

Blue Label Telecoms Initiation Report

ï‚· Using a SotP methodology we value Blue Label (BLT) with a

target price (TP) of ZAR27.20/share excluding Cell C.

Including Cell C, our TP increases to ZAR28.30/share.

ï‚· The BLT/Cell C ecosystem is likely to challenge the

incumbent operators’ market share in the lower Living

Standards Measure (LSM) segment.

ï‚· Vodacom relies on BLT for airtime distribution into the

lower LSM segment and is likely to adopt a wait-and-see

approach with regard to the proposed Cell C transaction.

Underlying
Blue Label Telecoms Ltd.

Blue Label Telecoms is involved in the procurement, selling and distribution of prepaid products for inter alia fixed and mobile networks and all business ancillary thereto. Co.'s business segments include the distribution of physical and virtual prepaid airtime and electricity in South Africa, India and Africa; technological innovation, development and support for Co.'s operations; provision of a mobile transactional ecosystem and services-provisioning platform delivering mobile-centric products and services through any mobile channel; and marketing of cellular and financial products and services through outbound telemarketing and other channels.

Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

Analysts
Ian Brink

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