According to Bloomberg reports, South African telecom giant Telkom is considering a $1 billion bid for mobile operator Cell C, this is according to three people “familiar to the matter.”
Cell C is trying to complete a recapitalisation drive after missing debt payments, and according to reports by Fin24, other potential bidders who have the capacity to complete such a deal have been approached by investment banks.
Karin Fourie, a spokeswoman for Cell C, said the recapitalisation process remains on course and is fully supported by the necessary investors and lenders.
This is not the first time Telkom have attempted to buy the carrier as talks were held in 2015 but a price was not agreed. This time however if the deal goes through it will allow Telkom to expand its mobile operations to better compete with South African market leaders Vodacom and MTN.
There’s no certainty that Telkom will make an offer. Representatives for Telkom and Blue Label, who agreed to buy a 45 percent stake in Cell C last year, but the deal has yet to be completed a week before the end-February deadline, declined to comment.