Earlier this month Telkom announced it had made an offer to acquire Cell C but now it appears as if the embattled operator has rejected the offer.
In an announcement on Friday morning, Telkom informed shareholders that its offer had been rejected.
“Telkom has received written notice from the Cell C board of directors rejecting its non-binding proposal,” Telkom wrote.
“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,” the network operator continued.
The reasons for Cell C rejecting the offer are not known as of time of writing.
“As the Offer has been rejected by Cell C’s board of directors, Telkom shareholders are advised that they are no longer
required to exercise caution when dealing in Telkom securities,” Telkom told shareholders.
With Cell C in dire need of a turnaround, may believed an acquisition by Telkom would rescue the firm. As that is no longer happening, Cell C will have to show its stakeholders how it plans to turn the ship around.
The network operator recently expanded its roaming agreement with MTN but whether that will help remains to be seen.