South Africa’s TelKom SA in talks of possible Cell C acquisition



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South Africa’s TelKom SA in talks of possible Cell C acquisition

On Friday, the 15th of November 2019, Pretoria-based South Africa’s 39 per cent state-owned, multinational wireline and wireless telecommunication provider, Telkom SA, operating in 38 countries across the African continent, had issued a statement saying that the largest telco gear company in Africa had been in an advanced stage to acquire Cell C, South Africa’s third-largest mobile carrier, suggesting an unexpected move to enhance Telkom SA’s regional dominance which in effect had hurt shares of debt-laden Cell C and its majority shareholder Blue Label Telecoms alongside TelKom SA.

Following reveal of Friday’s (November 15th) breakthrough development that had every potentiality to alter the landscape of the mobile carrier industry in South Africa, the second largest economy in Africa with a highly developed regional manufacturing HubSpot, Johannesburg Stock Exchange-listed share prices of Telkom SA had wrapped up Friday’s (November 15th) market 2.65 per cent down to 5,588.00 South African Rand, while the majority stakeholder of Cell C, Blue Label Telecoms Ltd.

fell by 1.16 per cent to 255.00 South African Rand. In point of fact, latest merger talks of Telkom SA and Cell C, the fourth- and third-largest mobile carrier in South Africa respectively, would be remarking Telkom SA’s second attempt to acquire its debt-laden rival, debt-piles of which were standing just a notch shy of $600 million as of June 30th this year, while a successful acquisition of Cell C would create a telecommunication entity of 27 million active subscribers.