Cell C vulnerable to Telkom overtures
The ailing company races to raise the funding required for its deal with suitors Blue Label
Cell C’s continued financial woes could scupper its plans for a tie-up with Blue Label Telecoms and pave the way for other suitors, including Telkom, to make a play for the struggling mobile network operator. According to a source close to the parties involved, Cell C is racing against time to raise the funding required for its deal with Blue Label. Speculation is rife that Telkom has made overtures to Cell C. If Telkom’s talks with the company proceed, this would be the fixed-line operator’s second attempt to buy Cell C in less than two years. Takeover talks were terminated in November 2015 because of a disagreement on price. Cell C is already in advanced talks with Blue Label about a potential deal that could see the prepaid airtime and electricity distributor take up 45% in the business. Cell C management and its staff would own 25%, while 3C Telecommunications, a subsidiary of Oger Telecom, would have a 30% holding.
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