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Telkom confirms it’s pursuing Cell C

Telecoms firm says discussions are at a preliminary stage.
The potential acquisition will be subject to Cell C completing a financial restructuring to ensure that its gearing levels are reduced to a sustainable level as specified by Telkom. Image: Moneyweb

Telkom on Friday confirmed what everyone already knows: that it is pursuing an acquisition of the financially troubled mobile operator Cell C.

In a statement released via the JSE’s stock exchange news service, Telkom said it is “in discussions with Cell C” regarding a potential acquisition of the company.

“Telkom has substantially concluded its due diligence. However, discussions are at a preliminary stage,” it said.

“The potential acquisition will be subject to Cell C completing a financial restructuring to ensure that its gearing levels are reduced to a sustainable level as specified by Telkom and commercial contractual relationships are renegotiated to terms acceptable to Telkom.”

It said any deal will be subject to a number of regulatory approvals.

“The potential acquisition, if concluded, may have a material effect on the price of the company’s securities. Accordingly, shareholders are advised to continue to exercise caution when dealing in the company’s securities until a further announcement is made.”

This article is republished with permission from TechCentral. Read the original article.

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COMMENTS   9

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I think this is a good move.

I have a SIM for voice from Cell C and a SIM for data from Telkom in my phone.

I honestly could not find better for either of those in SA for the money.

Can we hear what the Competition Tribunal say in this regard!

Last year this same story did the rounds, but I think there is no smoke without a fire. Just remember that Vodacom, Cell C and Telkom currently use the same network infrastructure for roaming.

@The Spark, agree my family and myself have been on CC but also on TM for the last ten years. My Android Dual SIM phone used to have a CC SIM on CC 66 cts prepaid fee plan, now FNB Connect. The other one is on TM SIM Sonke Prepaid. Both CC 66 cts and TM prepaid are very good value for money, and have good data bundles.
CC roams on MTN where they do not have coverage, and sometimes even still on VC 2G. TM roams nowadays on VC where they do not have coverage of their own.
Telkom just has such a horrible reputation when it comes to customer services at post paid and with billing. My experience with CC shops and call center has actually been excellent. Call centre always responds immediately.
Sipho should really keep the customer side of CC and NOT close their outlets.

@ Wynand, you are not correct about roaming, read my other post.

Telkom should have left this company to go to the knackers!!! To pay in the billions for a company that is sinking would be crazy and erode shareholder value immenssely. Telkom should ask government if it can ‘rescue’ and ‘bail out’ Cell C for a total consideration of $1.00 (one dollar).

This is the best move ever made by Telkom, this black excellence non corruptable CEO he is in a mission to prove that he is capable.

The Price of Cell C will never be high because of their massive debts. So maybe one $.

End of comments.

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