Fresh comment from Cell C’s new CEO, Jose Dos Santos, has again raised questions of whether the company is up for sale – or open to a merger deal.<\/p>\n
Speaking at the company’s new headquarters in Midrand on Tuesday (14 May), Dos Santos said:\u00a0 \u201cI think this industry will see some consolidation. I chat to everybody, everybody loves me.”<\/p>\n
“Chats have never stopped. We talk to everybody. I think these are exciting times,\u201d the CEO said.<\/p>\n
Dos Santos said that, when the time was right, the company would make some statements “on what is happening”.<\/p>\n
Former Cell C CEO Alan Knott-Craig said in 2013 that Cell C would need to be swallowed up by a \u201clarger group to compete with the likes of Vodacom and MTN\u201d.<\/p>\n
The group has for some time been linked to a merger with Telkom, through its mobile arm, with Knott-Craig admitting that he had spoken with the operator over a potential deal.<\/p>\n
Those discussions however, appear to have dried up.<\/p>\n
In March, MTN signed an agreement with Telkom, which would see it take over financial and operational responsibility for the rollout and operation of Telkom\u2019s radio access network (RAN).<\/p>\n
The two companies entered into a Heads of Agreement (HoA) to enable each party to be able to roam on either party\u2019s network.<\/p>\n
Knott-Craig has long reasoned that there is no room for four mobile operators in South Africa, and that consolidation between firms was inevitable.<\/p>\n
On Tuesday, South Africa\u2019s third mobile operator noted that it has signed up a record 1.6 million new subscribers in March 2014, taking its total subscriber base to 16.6 million.<\/p>\n
Dos Santos said that the group\u2019s total revenue increased 14% year on year, with subscribers up 35% YoY to the end of December, 2013.<\/p>\n
Looking ahead, Dos Santos said that the group\u2019s capex forecast for 2014 is at R2.3 billion in 2014.<\/p>\n
Is Cell C making money?<\/strong><\/a><\/p>\n Cell C confirms Telkom Mobile merger talks<\/strong><\/a><\/p>\n Telkom dismisses Cell C merger talks<\/strong><\/a><\/p>\n Cell C looking for partner: report<\/strong><\/a><\/p>\n