Cell C walks away from Telkom talks, again
Mobile operator Cell C says it is committed to its deal with Blue Label Telecoms, and is therefore “unable and not willing to pursue any discussion” with Telkom over an acquisition deal.
Bloomberg reported earlier this week that Telkom was again considering a bid of $1 billion (around R13 billion) for Cell C, citing three people familiar with the matter.
In November 2015, Telkom announced it was in discussions with Cell C to acquire all shares in the company, following reports that the group had offered as much as R14 billion for Cell C.
Oger Telecom, which is Cell C’s major shareholder, rejected the offer from Telkom shortly thereafter, with the Dubai-based firm believed to have been seeking R22 billion.
Telkom then announced that it had terminated talks.
In a statement on Thursday (23 February), Cell C pointed to various articles in the media concerning a potential offer from Telkom to purchase the company.
“The board can confirm that it has received an unsolicited, non-binding and conditional proposal from Telkom Limited in respect of Cell C,” said Cell C chairman, Mohammed Hariri.
He pointed out that Cell C has already entered into legally binding agreements with, among other parties, Blue Label Telecoms.
“Among other things, Cell C has undertaken to not enter into any agreement, incur any obligation or take any action which may restrict it or any of its affiliates from complying with its obligations under such agreements or which could result in the transactions envisaged in such agreements not proceeding to completion.
“Cell C has every intention of complying with its obligations under such agreements.
“The board has therefore informed Telkom Limited, following a board meeting on Wednesday, that it is unable and not willing to pursue any discussion and has rejected its proposal,” Hariri said.
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