South African operator Cell C says it is discussing various proposals, including a non-binding offer from Telkom, with independent financial and legal advisers appointed by its lenders. Cell C confirmed that it had received an offer from Telkom but said it remains focused on ensuring operational efficiencies, restructuring its balance sheet, implementing a revised network strategy and improving overall liquidity. It said that negotiations with MTN for an expanded roaming agreement are at an advanced stage.
According to Cell C, independent financial and legal advisers have been appointed representing the lenders, and constructive discussions on the recapitalisation are under way with them and other stakeholders in respect of various proposals.
Telkom also disclosed that takeover talks with Cell C are ongoing. Telkom said it has substantially concluded its due diligence but discussions are at a preliminary stage. The potential acquisition would be subject to Cell C completing a financial restructuring to ensure its gearing levels are reduced to a sustainable level as specified by Telkom, and that commercial contractual relationships are renegotiated to terms acceptable to Telkom. The deal would also require a number of regulatory approvals.
The deal will be subject to a number of regulatory approvals if successful.
