{"id":355135,"date":"2019-11-19T07:13:19","date_gmt":"2019-11-19T05:13:19","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=355135"},"modified":"2019-11-19T07:13:19","modified_gmt":"2019-11-19T05:13:19","slug":"telkom-slump-deepens-after-cell-c-signs-roaming-pact-with-rival","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/355135\/telkom-slump-deepens-after-cell-c-signs-roaming-pact-with-rival\/","title":{"rendered":"Telkom slump deepens after Cell C signs roaming pact with rival"},"content":{"rendered":"

Telkom SA SOC Ltd shares extended their slump in Johannesburg after its acquisition target, Cell C Pty Ltd, agreed to an extended roaming deal with rival MTN Group Ltd.<\/p>\n

Telkom stock has sunk to its lowest in almost a year and is down 17% in the past four days. The company said Nov. 15 it was in talks to buy Cell C and combine South Africa\u2019s third and fourth-largest mobile-phone companies.<\/p>\n

Monday\u2019s MTN-Cell C news \u201creduces visibility on Telkom\u2019s offer,\u201d Citigroup Inc analysts including Dilya Ibragimova wrote in a note.<\/p>\n

\u201cThe timing of the announcement may signal that Cell C may not be entirely happy with the terms of Telkom\u2019s offer,\u201d the Citi analysts wrote.<\/p>\n

A consolidation in the South African market from four to three players is not Citi\u2019s base case, they wrote.<\/p>\n

\"\"<\/a><\/p>\n

The news \u201cdefinitely makes the potential acquisition by Telkom much more complicated as it further entrenches MTN\u2019s reach over the Cell C user base, and forces Telkom to potentially pay a higher future price should there be an acquisition of Cell C, which is already a concern in the market as Telkom may not have the balance sheet capacity to take on the acquisition,\u201d Lester Davids, an analyst at Johannesburg-based Unum Capital, said by email.<\/p>\n

Telkom dropped 2.1% Monday to the lowest since Nov. 26, 2018. Cell C\u2019s 45% shareholder Blue Label Telecoms Ltd jumped 8%. MTN fell 0.3%, while cross-town rival Vodacom Group Ltd lost 1.5%.<\/p>\n

\"\"<\/a><\/p>\n

\n

Read: Telkom says it wants to buy Cell C<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Telkom SA SOC Ltd shares extended their slump in Johannesburg after its acquisition target, Cell C Pty Ltd, agreed to an extended roaming deal with rival MTN Group Ltd.<\/p>\n","protected":false},"author":59,"featured_media":44042,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[1653,42,26,28,65,27],"class_list":["post-355135","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-blue-label-telecom","tag-cell-c","tag-headline","tag-mtn","tag-telkom","tag-vodacom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/355135","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=355135"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/355135\/revisions"}],"predecessor-version":[{"id":355143,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/355135\/revisions\/355143"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/44042"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=355135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=355135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=355135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}