Telkom has announced that it has terminated talks to acquire the full shareholding of Cell C from Oger Telecom.
The decisions was a “mutual agreement” with Oger, Telkom said, following a period in which the telco conducted a due diligence on Cell C.
“Accordingly, shareholders are advised that caution is no longer required to be exercised when dealing in Telkom’s securities,” it said.
Telkom officially confirmed it was in talks to acquire Cell C on 9 November, following reports that the group had offered as much as R14 billion for the mobile operator.
Bloomberg reported that Oger Telecom, which is Cell C’s major shareholder, rejected the offer from Telkom in October, with the Dubai based firm believed to be seeking R22 billion.
Telkom’s statement read:
“By mutual agreement Telkom and Oger Telecoms have today ended all discussions related to the potential purchase of Cell C by Telkom.
“Through Telkom’s engagement with Oger Telecoms in relation to Cell C, it has become clear that there is a difference between the parties on the assessment of value of the proposed transaction. As no agreement has been reached, Telkom and Oger Telecoms today agreed to end all discussions.”
Cell C reported in September that it was making a profit in South Africa, boasting a subscriber base of 22 million customers.
In its latest financial results, Telkom reported that its mobile division was nearing a break-even level, increasing its mobile data revenue to R711 million for the six months ended September 2015.
Telkom’s active mobile subscribers increased 11.5% to 2,257,404 with a blended ARPU of R89.05, it said.