South Africa's Telkom in talks to acquire Cell C
South Africa’s Telkom has confirmed that it is in talks to acquire Cell C in a move to strengthen its mobile business.
The operator made its announcement to its shareholders on Monday, following a series of reports about a potential deal with Cell C.
“Shareholders are referred to the cautionary announcement released on SENS on 28 September 2015, and are advised that Telkom is in discussions regarding a potential transaction to acquire all of the shares of Cell C,” said Telkom.
“Such transaction, if successfully concluded, may have a material effect on the price of Telkom’s securities. Telkom is currently performing due diligence on Cell C.”
Telkom, which is 40% owned by the South African government, operates the country’s fourth largest mobile operator while Cell C has 22 million subscribers and owns South Africa’s third largest mobile network. Saudi Arabia's Oger Telecom South Africa is Cell C's largest shareholder, with a 75% majority stake.