Telkom has withdrawn its cautionary announcement relating to the potential acquisition of Cell C, notifying shareholders that mobile operator has rejected its offer.
Telkom said that it has received written notice from the Cell C board of directors rejecting its non-binding proposal, which was confirmed earlier this month.
“As the offer has been rejected by Cell C’s board of directors, Telkom shareholders are advised that they are no longer required to exercise caution when dealing in Telkom securities,” it said.
Telkom’s offer was one of two offers being considered by Cell C, with the other being a broader roaming agreement with MTN and local investors known as the Buffett Consortium to recapitalise the company, which may include the sale of some of its assets, Bloomberg reported.
The two offers were considered side-by-side as Cell C and its owners try to restructure R9 billion of debt.
The Telkom offer was thrown into doubt after Cell C entered into the roaming agreement with MTN earlier in November.
While rejected, Telkom said it believes its offer was a compelling proposition that would have created significant value for all stakeholders including Telkom’s shareholders.
Cell C said it remains focused on ensuring operational efficiencies, restructuring its balance sheet, implementing a revised network strategy and improving overall liquidity.