Telkom poised to make a move on Cell C - TechCentral

Telkom poised to make a move on Cell C

Telkom issued a cautionary notice to shareholders on Tuesday saying it is in discussions in relation to a possible acquisition — and the most likely target is Cell C.

Speculation has been swirling for weeks that Telkom is readying a move on its financially distressed rival.

TechCentral reported last month on strong market talk that Telkom remains interested in Cell C. However, Cell C’s high levels of debt could make an acquisition difficult.

Telkom’s cautionary comes as Cell C works to finalise a new roaming agreement with MTN South Africa and continues to seek a recapitalisation deal with businessman Jonathan Beare’s Buffet Consortium.

Telkom CEO Sipho Maseko had said earlier this year that the company was no longer interested in buying Cell C. A Telkom spokesman said last month of the renewed talk of a potential deal that the company “does not comment on market speculation”.

A report elsewhere last month suggested China Mobile was poised to buy a stake in Telkom, though multiple sources close to Cell C said this was not the case.

TechCentral understands that Cell C remains in exclusive discussions with MTN until the end of November, precluding the company from detailed engagements with other operators.  — (c) 2019 NewsCentral Media

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