Share

Telkom says Cell C has rejected its takeover bid

Telkom announced on Friday that it had received written notice from the Cell C board of directors, rejecting its non-binding takeover proposal.

"The Telkom board continues to believe the offer is a compelling proposition that would have created significant value for all stakeholders including Telkom's shareholders," it said on Friday in an update to shareholders. 

Telkom confirmed it was in talks to buy the mobile network operator in mid-November, saying it had substantially concluded its due diligence.

Cell C, in a brief statement on Friday, confirmed its board has declined Telkom’s offer.  The mobile operator said it will "consider all offers which takes the full value of Cell C into consideration".

"Cell C was recently recognised as one of the top 30 most valuable South African brands and it remains focused on its 16-million strong customer base, its distribution channel of more than 240 stores and its valuable spectrum," it said.    

"The company continues to prioritise its turnaround strategy which includes ensuring operational efficiencies, restructuring its balance sheet, implementing a revised network strategy and improving overall liquidity." 

According to Bloomberg, a tie-up between Cell C and Telkom's mobile-phone division would create a business with about 22 million subscribers

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders