You are currently viewing our desktop site, do you want to visit our Mobile web app instead?
 Registered users can save articles to their personal articles list. Login here or sign up here

China Mobile reported to be in talks to buy Cell C

Telkom is also rumoured to be circling.

A report on Tuesday suggested China Mobile may be about to swoop to the rescue of embattled mobile operator Cell C. Telkom is also rumoured to be circling.

ITWeb, an online technology publication — citing an unnamed source who it said has “knowledge of the matter” — said that talks are taking place between Cell C and China Mobile and that a “deal is imminent”.

TechCentral could not immediately independently determine the veracity of the report, but has heard from several sources in recent weeks that Telkom may again showing some sort of interest in Cell C. Telkom CEO Sipho Maseko had said earlier this year that company was no longer interested in buying the mobile operator.

If the ITWeb report is correct, and China Mobile does buy a stake in the operator — and especially a controlling stake — it could have a significant impact on the South African mobile market, particularly in light of the Chinese company’s deep pockets, technical expertise and buying power.

In an e-mailed response to a query from TechCentral, Cell C said: “We cannot comment on behalf of Telkom or China Mobile. Cell C will keep the door open to any conversations that will assist the company’s future viability.”

China Mobile, which is ultimately owned by the Chinese government, is the world’s largest mobile operator by subscribers. However, the company hasn’t expanded aggressively outside of its home market.

The scale of its operations in China is eye-watering: as at 31 December 2018, it serviced total connections of more than 1.6 billion, had almost 460 000 employees and had annual revenue of 736.8 billion yuan (R1.6 trillion).

Its businesses primarily consist of mobile voice and data operations, fixed broadband, and other information and communications services, according to its website.

R8 billion loss

The China Mobile speculation comes less than two weeks after Cell C said it had reported an R8-billion net loss for the 12-month period to 31 May 2019, much of which was the result of impairments.

Cell C is in advanced discussions with potential funders, led by the Buffet Consortium, with a view to recapitalising the business and repairing its distressed balance sheet.

Chief financial officer Zaf Mahomed said in a recent interview with TechCentral that the company hopes to have the recapitalisation deal concluded before the end of the year.

Cell C is also expected to announce a new roaming agreement in the coming weeks with rival MTN South Africa that will allow it to reduce its capital expenditure. — © 2019 NewsCentral Media

This article was published with the permission of TechCentral. The original publication can be viewed here. 

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   2

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up for FREE

China should buy eskom, saa,sabc,denel,transnet,(who’s also in trouble?)
Lol

That is exactly what China will do eventually 🙂 Google “China debt diplomacy” for interesting reading.

China is expanding on its global dominance. From the South China Sea to Africa and beyond.

China financed various projects in 3rd world countries, well knowing these corrupt & inept governments will not be able to repay debt. “No problem, you can cede Durban, Richards Bay & Cape Town harbours to us China on a 99-year lease” 😉 China needs more navy bases in Africa, besides in Djibouti.

…and then SA’s imports & exports will go via Chinese controlled soil. China will collect the customs fees….not SARS. Sorry to our vehicle manuf industry….it will sink against waves of Chinese quality imports….as ANC govt can be told to remove our (protective) import tariffs on SA manuf vehicles. SA won’t be able to compete.

Low and behold, the day may come where China will “request permission” from SA to have Chinese ICBM nuclear missiles also be placed in SA, to potentially strike the US or other western targets”. Our triumphant ANC-govt will have no other option to abide….otherwise Chinese funding will be cut off….will all kinds of detrimental effects for ANC-support.

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

SHOP NEWSLETTERS TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: