Telkom has confirmed what the market has suspected for months: that it's in talks to buy rival, Cell C.
The telco released an announcement a short while ago cautioning shareholders to trade carefully in its shares as it "is in discussions regarding a potential transaction to acquire all of the shares of Cell C".
For months, the market has suspected Telkom was interested in buying its rival, and Telkom confirmed with ITWeb in August that it would "certainly consider" buying Cell C at the right price.
On 28 September, Telkom issued a cautionary announcement that it was in discussions with another company but until today had not confirmed the company was in fact Cell C.
In August, Oger Telecom told Business Day it had had multiple offers to buy its 75% stake in Cell C. From today's SENS announcement, it seems Telkom has its sights set on far more than just a controlling stake, indicating it is discussing acquiring "all of the shares of Cell C".
"Telkom is currently performing due diligence on Cell C," the company says.
How much Telkom is offering for Cell C is not clear but shareholders are advised to continue exercising caution when dealing in Telkom securities until the company makes a further announcement on the matter.
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