Cell C in discussions to sell contract subscribers to Vodacom

15 Jan 2020

Vodacom South Africa is reportedly in talks with cash-strapped rival Cell C regarding the takeover of its post-paid mobile customers, TechCentral writes. According to unnamed sources familiar with the matter, Vodacom could gain just over one million subscribers from the deal; however, the ongoing discussions are said to be at an early stage and could fall through. Cell C and its biggest shareholder, Blue Label Telecoms, are currently looking at ways to cut costs and strengthen the balance sheet as they battle to service ZAR9 billion (USD624 million) of debt. Transferring the customers to Vodacom would attract a fee and free Cell C from the cost of servicing clients, including handset subsidies and credit checks, the sources said.

TeleGeography notes that in November 2019 Cell C rejected a takeover offer from Telkom; the company, however, is said to be in negotiations with local investment firm Buffett Group, which could trigger its second recapitalisation in four years.

South Africa, Blue Label Telecoms, Cell C, Telkom South Africa, Vodacom South Africa