Telkom ups its bid for Cell C: sources

MyBroadband has received information from reliable sources that Telkom has upped its bid for Cell C, and that a deal between the two companies is now more likely than before.

Cell C is majority owned by Dubai-based Oger Telecom.

Speaking at the 2015 MyBroadband Conference, Telkom COO Brian Armstrong confirmed that there have been discussions between the two operators.

He said Telkom CEO Sipho Maseko made it clear that if the price was right, they would be interested in buying Cell C.

On 28 September, Bloomberg reported that Telkom was looking to buy Cell C for less than the R22 billion value placed on the mobile operator by its owners.

Bloomberg stated Telkom was only prepared to pay R18 billion for the business, citing a person familiar with the matter.

At the end of September, Business Day reported a “potential takeover of Cell C by Telkom was stalling over price”.

However, a well-positioned source has told MyBroadband that the original offer and the new revised offer were both below R18 billion.

The higher revised offer, which was not disclosed, is an attempt by Telkom to try and make the deal happen.

It should be noted that even if the two companies agree on a price, there will still be many regulatory, competition, and other considerations before an acquisition can take place.

MyBroadband asked Cell C for comment, but the company said it was “a matter for Cell C’s shareholders to comment on”.

We then asked Oger Telecom for comment, but the company did not respond by the time of publication. Telkom also did not respond to questions by the time of publication.

More on Telkom and Cell C

Telkom-Cell C acquisition rumours resurface

Telkom interested in buying Cell C: CEO