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

PAY ATTENTION: Click “See First” under the “Following” tab to see News on your News Feed!

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."

READ ALSO: Dlamini returns to government: Tasked with solving SA housing crisis

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, gathered.

Enjoyed reading our story? Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news!


Mailfire view pixel