Johannesburg, London: Telkom SA SOC Ltd is seeking to buy mobile-phone operator Cell C Pty Ltd for less than the 22 billion rand ($1.6 billion; Dh5.79 billion) value placed on the South African company by its owners, according to a person familiar with the situation.
Telkom, South Africa’s biggest landline company, is prepared to pay no more than 18 billion rand for the business, according to the person, who asked not to be identified as the matter is private. Cell C’s 75 per cent shareholder, Dubai-based Oger Telecom Ltd, put the higher pricetag on the company, which includes 14 billion rand of debt, according to a second person familiar with the talks.
Telkom operates South Africa’s fourth-biggest mobile-phone provider and is seeking to grow the business to help offset declining sales at its larger fixed-line unit. Cell C is the country’s No 3 wireless operator, behind market leaders Vodacom Group Ltd and MTN Group Ltd. Telkom chairman Jabu Mabuza said last month he sees an acquisition of Cell C as a possible way to expand the unit.
