Telkom said to seek Cell C acquisition
South Africa's Telkom is reportedly seeking to acquire Cell C for less than the 22 billion rand value placed on the company.
The operator is expected to pay no more than 18 billion rand for the company, according to a source of Bloomberg.
The potential merger between Telkom and Cell-C, the third largest operator in South Africa, comes after the country’s competition regulator rejected its proposal to form a partnership with MTN.
“Shareholders are accordingly advised to exercise caution when dealing in Telkom’s securities until a further announcement is made in this regard,” according to the company, without providing further details.
Cell C’s CEO, Jose Dos Santos, revealed last week that talks had taken place between the two companies. Last month, Telkom CEO Sipho Maseko said: “Cell-C is an interesting proposition. I’d like to do something with them. At the right price, I’m a buyer.”