Telkom has issued a cautionary announcement as it performs a due diligence on Cell C.
The group confirmed that it is in discussions with Cell C to acquire all shares in the telco group.
The announcement confirms initial reports from Bloomberg, which stated that Cell C’s major shareholder, Oger Telecom, rejected a R14 billion offer from Telkom in October.
The Dubai based firm is believed to be seeking R22 billion for Cell C, and has set a late November deadline for a new offer, according to Bloomberg’s sources.
The discussions between the groups remained long unconfirmed, leading to speculation in the market. Telkom warned shareholders not to react to speculative reports.
“Shareholders should also specifically exercise caution when reacting to information on this matter which has not been released by Telkom,” it said.