Telkom South Africa has admitted it is in talks about a possible deal as rumours regarding its interest in acquiring mobile operator Cell C reach fever pitch.
"Shareholders are advised that Telkom is in discussions which may have a material effect on the price of Telkom’s securities," the South African incumbent said in a brief statement on Monday.
The disclosure was made in response to mounting speculation that Telkom has ramped up its interest in acquiring local mobile operator Cell C.
Sources cited in a Bloomberg report, also on Monday, claimed that Telkom is preparing an 18 billion rand (€1.15 billion) offer for Cell C, markedly below the ZAR22 billion (€1.40 billion) asking price.
In addition, Cell C chief executive Jose dos Santos recently told local radio station Talk Radio 702 that his company has held merger talks with Telkom.
Cell C is the third-largest player in South Africa’s mobile market, which is dominated by Vodacom and MTN. Telkom is the market minnow, claiming a share of just couple of percent.
Cell C’s parent Oger Telecom told local news outlet Business Day in August that six would-be owners have shown interest in the company; however, it said at the time that it had made no final decision to sell.
