South African fixed line incumbent Telkom has confirmed that it is in discussions with smaller rival Cell C to acquire all of its shares, as it issued a cautionary announcement to Telkom shareholders that it is currently performing a due diligence on the wireless operator, Fin24 reports. The announcement confirms earlier reports that Dubai-based Oger Telecom rejected a ZAR14 billion (USD1.01 billion) offer from Telkom to acquire its 75% controlling stake in Cell C, with Oger said to have set a November deadline for a new offer.
As previously reported by TeleGeography’s CommsUpdate, in February 2015 it emerged that Oger was planning to divest its stake in Cell C, though the valuation of the cellco and its current debt were cited as the main issues blocking Oger’s exit from the company. Oger, which is itself owned by Saudi Telecom Company (STC), is seeking in the region of ZAR22 billion for Cell C.
South Africa,Telkom South Africa, Cell C, Saudi Oger, Corporate/Financial, Mergers/Acquisitions