Cell C parent rejects Telkom offer: report - TechCentral

Cell C parent rejects Telkom offer: report

Cell-C-640

Cell C shareholder Oger Telecom has rejected a R14bn offer from Telkom to acquire its 75% controlling stake in South Africa’s third mobile telecommunications provider, Bloomberg reported on Thursday.

Quoting a “person familiar with the matter”, the news wire said Telkom, which was recently forced by the competition authorities to walk away from a networking-sharing deal with MTN South Africa, was now conducting a due diligence on Cell C before deciding whether to make a higher offer.

Oger is reportedly seeking R22bn and has set late November as the deadline for a new offer from Telkom.

In August, Telkom CEO Sipho Maseko was quoted by Reuters as saying that, at the right price, the company would consider an offer to buy Cell C.

“I’d like to do something with them. At the right price, I’m a buyer,” Maseko was quoted as having said. He also said Telkom had a strong balance sheet, giving it the “flexibility to pursue … options”.

Telkom shares were trading up by 1,8% shortly after 10am on Friday morning. The counter has added 20% in the past 12 months.  – © 2015 NewsCentral Media

10 Comments

  1. Ofentse Letsholo on

    Telkom needs to up their moola, i like both of these companies and if Telkom buys Cell C it will be a huge thing to those of us using their services.

  2. Vusumuzi Sibiya on

    I have a feeling that there’s going to be a compromise reached somewhere in the middle; …the market would love for this to happen and I think that together they’ll be able to take the fight even more aggressively to the duopoly that’s been taking consumers for a ride for all those many years.

  3. R22B??? these Oger guys are smoking their socks! How much debt is CellC in? don’t the have bonds that will mature some time and require payment?

  4. dstv_sidekick on

    Oger must just do what’s better for them while they still have value in their invetsment. R18 Billion plus some few shares will be enough for this.

  5. dstv_sidekick on

    Some of those bonds are maturing sometime 2018 if i am not mistaken. They must just accept the offer and smile all way to bank.

  6. Ofentse Letsholo on

    Dude it would be awesome because Cell C and 8ta(still love the name) have great deals that benefit us regardless of how their coverage is being attacked. I see lots of good things happening for consumers. The wait is on for that sale. 🙂

  7. Vusumuzi Sibiya on

    >>8ta(still love the name)

    Let’s team-up and launch an MVNO with Cell C; and call it 8ta…

    …and when this deal is done – we’ll have things the way that they ought to be with the right name on an awesome network 😉

  8. even R14B is overpaying… I would think Oger should be happy with parting with their stake for anything more than R3B