Telkom SA said to have upped its bid for Cell C

19 Oct 2015

South African fixed line provider Telkom has reportedly increased its offer for smaller wireless operator Cell C, which is 75%-owned by Dubai-based Oger Telecom, MyBroadband reports. Earlier this month Telkom COO Brian Armstrong confirmed that there have been discussions between the two operators, though some media reports claimed that the ‘potential takeover of Cell C by Telkom was stalling over price’ as Telkom was prepared to pay only ZAR18 billion (USD1.38 billion) for the business (markedly less than Cell C’s ZAR22 billion valuation).

As previously reported by TeleGeography’s CommsUpdate, in February 2015 it emerged that Oger was planning to divest its stake in Cell C, though the valuation of the cellco and its current debt were cited as the main issues blocking Oger’s exit from the company. In September Telkom issued a market update – saying that it was in ‘discussions which may have a material effect on the price of Telkom’s securities’ – which further spiked speculations that it was looking into acquiring Cell C.

South Africa, Cell C, Oger Telecom, Telkom South Africa