Telkom has announced that it has terminated talks to acquire the full shareholding of Cell C from Oger Telecom.<\/p>\n
The decisions was a “mutual agreement” with Oger, Telkom said, following a period in which the telco conducted a due diligence on Cell C.<\/p>\n
“Accordingly, shareholders are advised that caution is no longer required to be exercised when dealing in Telkom\u2019s securities,” it said.<\/p>\n
Telkom officially confirmed it was in talks to acquire Cell C on 9 November, following reports that the group had offered as much as R14 billion for the mobile operator.<\/p>\n
Bloomberg reported that Oger Telecom, which is Cell C\u2019s major shareholder, rejected the offer from Telkom in October, with the Dubai based firm believed to be seeking R22 billion.<\/p>\n
Telkom’s statement read:<\/p>\n
“By mutual agreement Telkom and Oger Telecoms have today ended all discussions related to the potential purchase of Cell C by Telkom.<\/p>\n
“Through Telkom\u2019s engagement with Oger Telecoms in relation to Cell C, it has become clear that there is a difference between the parties on the assessment of value of the proposed transaction. As no agreement has been reached, Telkom and Oger Telecoms today agreed to end all discussions.”<\/p><\/blockquote>\n
Cell C reported in September that it was making a profit in South Africa, boasting a subscriber base of 22 million customers.<\/p>\n
In its latest financial results, Telkom reported that its mobile division was nearing a break-even level, increasing its mobile data revenue to R711 million for the six months ended September 2015.<\/p>\n
Telkom’s active mobile subscribers increased 11.5% to 2,257,404 with a blended ARPU of R89.05, it said.<\/p>\n
More on Cell C and Telkom<\/h3>\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