Telkom’s R14 billion offer for Cell C rejected: report
Cell C’s major shareholder, Oger Telecom has rejected a R14 billion offer from Telkom SA, for its 75% stake in South Africa’s third largest mobile operator, according to reports.
Bloomberg reported that Telkom is conducting due diligence on whether to make a renewed offer for Oger’s share, citing a person familiar with the matter.
The Dubai based firm is believed to be seeking R22 billion for Cell C, and according to Bloomberg, has set a late November deadline for a new offer, according to the person.
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”.
Oger declined to comment on the matter, while Telkom spokesperson Jacqui O’Sullivan told Bloomberg that the company would divulge “any relevant information” when required to do so.
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