Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Listed: All the MVNOs in South Africa – 2025 edition

      19 June 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      19 June 2025

      WhatsApp founders hated ads – Meta is adding them anyway

      19 June 2025

      China’s car factories run cold as price war masks deep overcapacity

      19 June 2025

      Yellow Card, Visa in deal to hasten stablecoin uptake in Africa

      19 June 2025
    • World

      Watch | Starship rocket explodes in setback to Musk’s Mars mission

      19 June 2025

      Trump Mobile dials into politics, profit and patriarchy

      17 June 2025

      Samsung plots health data hub to link users and doctors in real time

      17 June 2025

      Beijing’s chip champions blacklisted by Taiwan

      16 June 2025

      China is behind in AI chips – but for how much longer?

      13 June 2025
    • In-depth

      Meta bets $72-billion on AI – and investors love it

      17 June 2025

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025
    • TCS

      TCS+ | AfriGIS’s Helen Hulett on how tech can help resolve South Africa’s water crisis

      18 June 2025

      TechCentral Nexus S0E2: South Africa’s digital battlefield

      16 June 2025

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025
    • Opinion

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025

      Singapore soared – why can’t we? Lessons South Africa refuses to learn

      13 June 2025

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Cell C creditors push for Telkom takeover

    Cell C creditors push for Telkom takeover

    By Loni Prinsloo2 December 2019
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp
    Cell C’s head office in Woodmead, Johannesburg

    Cell C’s creditors aren’t giving up on a takeover offer from rival Telkom, which South Africa’s third largest mobile network operator rejected last week.

    Senior debt holders have hired investment banking firm Moelis & Co and corporate lawyers Linklaters and DLA Piper to lobby for the Telkom proposal, people familiar with the matter said. They could block Cell C from pursuing an alternative recapitalisation plan by forcing the carrier into liquidation or business rescue, said the people, asking not to be identified because talks are ongoing.

    A takeover by Telkom would return about 86c on the rand to lenders, while banks may have to take a haircut if Cell C goes ahead with a transaction involving local investment company Buffet Group, they said. Creditors are also requesting that Cell C’s board act independently from majority shareholder Blue Label Telecoms, the people said.

    The board is continuously approached by various parties and we remain focused on executing our turnaround strategy

    “The board is continuously approached by various parties and we remain focused on executing our turnaround strategy,” Cell C said in an e-mailed response to questions. “Independent financial and legal advisers have been appointed representing the lenders and constructive discussions on the recapitalisation are under way with them and other stakeholders in respect of various proposals.”

    Linklaters, DLA Piper and Moelis & Co declined to comment, while Buffet Group could not be reached. Telkom said it hasn’t had any further communication from Cell C’s side.

    It’s not the first time Cell C has spurned advances from Telkom, which wants to combine the country’s two smallest network operators to better compete against industry leaders MTN Group and Vodacom Group. After running into financial difficulties in 2016, Cell C opted for a deal with Blue Label, which now owns 45% of the company.

    Debt woes

    In July, Cell C missed interest payments and suspended future obligations, resulting in S&P Global Ratings cutting Cell C’s assessment to default. The company, which generates about R15-billion rand in revenue, is struggling to repay about R9-billion of debt.

    “This restructuring involves confidential discussions with various stakeholders, including Cell C’s board, shareholders, financiers and professional advisers,” Cell C said on Monday. “We acknowledge public interest in Cell C’s restructure. However, we request confidentiality in the process and will update the market in due course.”

    Cell C agreed on an extended roaming agreement with MTN last month that will give it access to the network of South Africa’s second largest wireless carrier. As part of that pact, Cell C will pay as much as R5-billion/year in roaming charges, from about R1.8-billion, the people said. Lenders haven’t been given a chance to review the deal, they said.  — (c) 2019 Bloomberg LP



    Buffet Consortium Cell C DLA Piper Linklaters Moelis & Co MTN MTN South Africa Telkom top
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleTelecoms shares plunge on commission’s shock intervention
    Next Article ‘Wrong’ to blame operators for data prices not falling faster

    Related Posts

    Listed: All the MVNOs in South Africa – 2025 edition

    19 June 2025

    MTN CEO edges Vodacom rival in pay stakes – but just barely

    18 June 2025

    TechCentral Nexus S0E2: South Africa’s digital battlefield

    16 June 2025
    Company News

    Doing more with less: Altron and Microsoft to show the way forward

    19 June 2025

    Why parents choose CambriLearn for online education

    19 June 2025

    Disrupt first, ask questions later – the uncomfortable truth about incident response

    18 June 2025
    Opinion

    South Africa pioneered drone laws a decade ago – now it must catch up

    17 June 2025

    AI and the future of ICT distribution

    16 June 2025

    Singapore soared – why can’t we? Lessons South Africa refuses to learn

    13 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.