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Telkom isn’t buying Cell C

After months and months of speculation it looks like Telkom’s purchase of mobile operator Cell C is firmly off the cards.

In a recent statement the parastatal telecoms giant said that negotiations with Oger Telecoms concerning the potential acquisition of Cell C have ground to a halt. Apparently the two companies reached an impasse over the value of Cell C.

“By mutual agreement Telkom and Oger Telecoms have today ended all discussions related to the potential purchase of Cell C by Telkom,” Telkom said in its statement. “Through Telkom’s engagement with Oger Telecoms in relation to Cell C, it has become clear that there is a difference between the parties on the assessment of value of the proposed transaction.”

“As no agreement has been reached, Telkom and Oger Telecoms today agreed to end all discussions.”

The announcement comes just three days after CEO Sipho Maseko told journalists at its results briefing that reports concerning Telkom’s plans to purchase the assets of Cell C had been overplayed in the press.

The fact that a disagreement over Cell C’s price led to the sale’s collapse isn’t exactly a shock. Back in October there were reports that Telkom was prepared to offer R18 billion for the mobile operator, which was way below Cell C’s R22 billion valuation.

 

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