Telkom eyes Cell C takeover, say sources
The partially state-owned operator wants 100% of Cell C and is angling for a cashless merger, people familiar with the preliminary talks say
Telkom is eyeing a full takeover of Cell C as part of its plans to create a more formidable challenger to network giants Vodacom and MTN and their near duopoly over SA's mobile telecommunications. The partially state-owned operator wants 100% of Cell C and is angling for a cashless merger, people familiar with the preliminary talks told Business Times this week. Telkom's preference is to fund the deal by issuing shares to Cell C's owners, including Blue Label Telecoms and Net 1, the people said. The parties would need to agree on a merger ratio, or valuation for Cell C, before talks can progress. In August last year, Blue Label bought 45% of Cell C and Net1 took on a 15% stake as part of the operator's recapitalisation deal. Telkom was keen on a Cell C takeover but was beaten to the punch. Earlier this year, the 41% state-owned network operator flirted with MTN, but those talks fizzled out. At the time of its recapitalisation, Cell C's debts were reduced by more than R30bn, though a...
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