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.”
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