All eyes on Cell C after Telkom advisory

Pretoria - Telkom issued a cautionary advisory to shareholders on Monday that the company was “in discussions which may have a material effect on the price of Telkom’s securities”.

Reports about a possible takeover of Cell C, South Africa’s third-biggest wireless carrier, were given a lot of airtime last week after Cell C chief executive officer Jose Dos Santos confirmed that discussions between the two over a merger had taken place.

Rumours had been circulating since it was announced in March that the Middle Eastern firm Oger Telecom had appointed Goldman Sachs to consider possible bids for its 75-percent stake in Cell C.

Dos Santos told Johannesburg-based radio station 702: “Telkom has been talking to us about the possibility of these types of transactions.”

Telkom chief executive Sipho Maseko had earlier confirmed an interest. Last month he was reported as saying: “Cell C is an interesting proposition. I’d like to do something with them... At the right price, I’m a buyer.”

ANA