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. Image: Moneyweb
A statement released on Friday has confirmed Telkom’s active pursuit to purchase embattled Cell C.
Tech Central reported that Telkom is in the preliminary stage of discussions with Cell C to potentially acquire the mobile operator.
The statement also explained that purchasing Cell C would only occur after a financial restructuring, to ensure that it is at a “sustainable level” in order to negotiate terms “acceptable” to Telkom.
Cell C currently has debt to the tune of over R8 billion.
It concluded by advising shareholders to “exercise caution” regarding Cell C’s securities until more announcements are made.
eNCA reports that Cell C and Telkom would result in a combined database of approximately 22 million subscribers.
(Compiled by Nica Schreuder)
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