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Telkom SA wants Cell C

By , ITWeb
South Africa , 09 Nov 2015

Telkom SA wants Cell C

Telkom is has confirmed its interest in purchasing Cell C. The communications provider confirmed that it is eyeing fourteen-year-old Cell C through a cautionary announcement to shareholders this morning.

"Shareholders are referred to the cautionary announcement released on SENS on 28 September 2015, and are advised that Telkom is in discussions regarding a potential transaction to acquire all of the shares of Cell C (Pty) Ltd ("Cell C")," read the SENS announcement on a transaction that has been rumoured to be in the making for months.

Telkom issued the announcement in appreciation of the material effect that the transaction may have on the price of Telkom's securities if it were to succeed.

The company also revealed that it is currently performing due diligence on Cell C.

"Accordingly, shareholders are advised to continue exercising caution when dealing in Telkom securities until a further announcement is made in this regard. Shareholders should also specifically exercise caution when reacting to information on this matter which has not been released by Telkom," concluded the announcement.

Telkom's operating revenue from continuing operations currently stands at R31.7 billion and profit after tax from continuing operations is R2,889 million for the year ended 31 March 2015.

Its total assets amount to R42.0 billion. The telco has approximately 3.4 million telephone access lines in service and 964,196 ports connected via MSAN access. As of 31 March 2015. It also offers services to business, residential and payphone customers.

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