Telkom sweetens its bid for Cell C: sources

 ·19 Oct 2015
Telkom Cell C

MyBroadband has received information from reliable sources that , and that a deal between the two companies is now more likely than before.

Cell C is majority owned by Dubai-based Oger Telecom.

Speaking at the 2015 MyBroadband Conference, Telkom COO Brian Armstrong confirmed that there have been discussions between the two operators.

He said Telkom CEO Sipho Maseko made it clear that if the price was right, they would be interested in buying Cell C.

On 28 September, Bloomberg reported that Telkom was looking to buy Cell C for less than the R22 billion value placed on the mobile operator by its owners.

Bloomberg stated Telkom was only prepared to pay R18 billion for the business, citing a person familiar with the matter.

At the end of September, Business Day reported a “potential takeover of Cell C by Telkom was stalling over price”.

MyBroadband recently received information that Telkom has now increased its original offer to try to make the deal happen.

It should be noted that even if the two companies agree on a price, there will still be many regulatory, competition, and other considerations before an acquisition can take place.

MyBroadband asked Cell C for comment, but the company said it was “a matter for Cell C’s shareholders to comment on”.

We then asked Oger Telecom for comment, but the company did not respond by the time of publication. Telkom also did not respond to questions by the time of publication.

More on Cell C

Cell C valued at R22 billion

Telkom ‘discussions’ fuel Cell C acquisition rumour

We are profitable: Cell C CEO

Show comments
Subscribe to our daily newsletter