Bloomberg has reported that Telkom is considering a bid of $1 billion (around R13 billion) for Cell C, citing three people familiar with the matter.<\/p>\n
\u201cInvestment banks are also approaching other potential bidders with the firepower to take on the deal, said two of the people,\u201d reported Bloomberg.<\/p>\n
The news comes two weeks after Cell C had its corporate credit rating downgraded by S&P Global after missing an interest payment on senior secured bonds.<\/p>\n
Cell C is currently in the process of restructuring its debt in an acquisition deal involving Blue Label Telecoms and other shareholders.<\/p>\n
Cell C spokesperson Karin Fourie said the Cell C recapitalisation remains on track and is supported by the equity investors as well as the existing lenders to the business.<\/p>\n
This is not the first time Telkom has expressed an interest in buying Cell C.<\/p>\n
In November 2015, Telkom announced it was in discussions with Cell C to acquire all shares in the company.<\/p>\n
Shortly afterwards, Telkom said it had terminated talks to acquire the full shareholding of Cell C from Oger Telecom.<\/p>\n
The decision was a \u201cmutual agreement\u201d with Oger, following a period in which the telco conducted a due diligence on Cell C, said Telkom.<\/p>\n
\u201cThrough 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,\u201d said Telkom.<\/p>\n