South African fixed line incumbent Telkom has abandoned plans to acquire rival operator Cell C from Dubai-based Oger Telecom, noting that the move was ‘by mutual agreement’. Telkom informed its shareholders of the decision on 19 November 2015, stating: ‘… it has become clear that there is a difference between the parties on the assessment of value of the proposed transaction. As no agreement has been reached, Telkom and Oger Telecom today agreed to end all discussions.’
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. Earlier this month reports emerged confirming Telkom had issued a cautionary announcement to its shareholders that it was performing a due diligence on the wireless operator, with Oger Telecom having rejected a ZAR14 billion (USD1.01 billion) offer from Telkom to acquire its 75% controlling stake in Cell C.