Business News: Telkom in early negotiations to possibly acquire Cell C

Business News: Telkom in early negotiations to possibly acquire Cell C

- Telkom has confirmed that it is currently in discussions to purchase embattled network operator Cell C

- Shareholders heard how talks were currently at a preliminary stage from Telkom

- While details were scares, the entity said the acquisition was subject to regulatory approval

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Telkom is eyeing out embattled network operator Cell C as a new potential acquisition.

Fin24 reports that shareholders were notified of the possible purchase in an update:

"Telkom has substantially concluded its due diligence, however discussions are at a preliminary stage. The potential acquisition will be subject to Cell C completing a financial restructuring to ensure that its gearing levels are reduced to a sustainable level as specified by Telkom and commercial contractual relationships are renegotiated to terms acceptable to Telkom."

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Bloomberg noted that the deal could create a business with around 22 million subscribers in total.

Cell C confirmed that it had indeed received a non-binding offer from Telkom, commenting:

"Cell C remains focused on ensuring operational efficiencies, restructuring its balance sheet, implementing a revised network strategy and improving overall liquidity."

Further details were scarce due to the negotiations being in the early stages, Briefly.co.za gathered.

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Source: Briefly.co.za

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