Telkom CEO Sipho Maseko says that the group hopes to achieve break-even for its mobile business by year end.<\/p>\n
“We are confident that our mobile business will achieve break-even on EBITDA (earnings before interest, tax, depreciation and amortisation),” the chief executive said in a statement on Monday, announcing the company’s interim results for the six month period ended September 2015.<\/p>\n
On Monday, Telkom noted the following highlights within its mobile business:<\/p>\n
“We are very pleased with the improved performance of our mobile business,” Maseko said.<\/p>\n
He said that the company will continue to consider organic and inorganic initiatives to enhance and further improve the performance to the mobile business.<\/p>\n
“To this end, we have announced that we are considering a potential transaction to acquire all of the shares of Cell C.”<\/p>\n
Bloomberg had previously reported that Cell C\u2019s major shareholder, Oger Telecom, rejected a R14 billion offer from Telkom in October.<\/p>\n
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\u2019s sources.<\/p>\n
“We are currently performing due diligence on Cell C, and will update shareholders as the process progresses.”<\/p>\n
Cell C meanwhile, announced in September that it is now a profitable company, boasting 22 million customers.<\/p>\n
In South Africa, MTN has just under 30 million customers, generating revenue of\u00a0R39 billion, while Vodacom has 33.7 million customers generating R62 billion annually.<\/p>\n
Telkom officially wants to buy Cell C<\/a><\/strong><\/p>\n Telkom sweetens its bid for Cell C: sources<\/a><\/strong><\/p>\n Cell C valued at R22 billion<\/a><\/strong><\/p>\n Telkom \u2018discussions\u2019 fuel Cell C acquisition rumour<\/a><\/strong><\/p>\n