Telkom confirms it wants to buy Cell C

File: Cell C says it's in the process of restructuring its operations after under-performing and generating losses for many years.

File: Cell C says it's in the process of restructuring its operations after under-performing and generating losses for many years.

Flickr/Paul Saad

JOHANNESBURG - Telkom has confirmed it's in talks to buy mobile network operator Cell C.

It made the announcement to shareholders on Friday morning.

Telkom says it has substantially concluded its due diligence, but discussions are only at a preliminary stage.

READ: Cell C putting some assets up for sale

Telkom hasn't provided further details, but it says the potential acquisition is subject to regulatory approval.

A tie-up between Cell C and Telkom's mobile-phone division will reportedly create a business with about 22 million subscribers.

This news follows speculation over the past few weeks that Telkom wants to buy the debt-laden mobile phone operator as part of its plan to break the stranglehold of MTN and Vodacom.

Cell C is sitting with debt of about R8.7-billion.

Source
eNCA

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