Cell C has been in a dark place for the longest of times with things coming to a head when the South African telecoms company announced that it had made losses of R8 billion earlier this year.
Shortly after announcing the results, Cell C announced that they would be moving their network to MTN which would essentially make the company a Virtual Mobile Network Operator.
It seems that wasn’t the last twist of the Cell C. Telkom has now announced that they are in talks to buy Cell C despite talks still being in their formative stages:
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.Telkom Statement
This is the third time that Telkom has attempted to purchase Cell C with the latest attempt proving futile after Cell C recapitalised under Blue Label Telecoms.
If the acquisition of Cell C does go through it would leave Telkom with around 22 million subscribers which is almost a 100% increase in subscriber numbers from Telkom’s 11.5 million subscribers.
It’s not yet clear how Telkom’s interest will affect Cell C and MTNs plans which were also reportedly in advanced stages.