23.6 C
Johannesburg
Tuesday, May 21, 2019
Home Breaking News Does Telkom have funds to buy Cell C?

Does Telkom have funds to buy Cell C?

 

TechFinancials.co.za had a number of readers ask about how Telkom will finance the possible acquisition of Cell C. Telkom informed investors on Monday that it was conducting a due diligence to buy Cell C. By Gugu Lourie


Bloomberg sources are saying Oger Telecom has put a R20 billion price tag on Cell C.

The question whether Telkom could really afford that price tag of Cell C lies in an article written by TechFinancials.co.za on 4 October 2015 titled:  Cell C could be a great buy for Telkom.

In the article, TechFinancials.co.za argued that the answers is yes.

Telkom may opt to initiate a rights issue to raise cash to fund the deal, but this may be unpopular with certain investors, who may not want to dilute their shares.

However, Telkom may perhaps also decide to go for a simple route: share placing, which would mean approaching its top institutional investors to take up the rights issue to buy Cell C.

But the rights issue is likely to dilute South African Governments shareholding and the question is whether the state will be prepared to accept that.

The shareholders of Telkom include the South African Government, Public Investment Corporation, Old Mutual, Allan Gray, Investment Solutions and retail investors. The Government owns a majority stake in Telkom.

Email TechFinancials.co.za at editor@techfinancials.co.za

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Telkom’s Chairman-In-Waiting Sello Moloko Buys Stake in Tech Firm KID

Sello Moloko, Telkom's chairman-in-waiting, has bought a 40% stake in Knowledge Integration Dynamics (KID) for an undisclosed amount. Moloko has acquired the shareholding in KID...

African Bank Launches MyWORLD, A New “Shared Banking” Account

African Bank today officially launches its transactional banking offering called MyWORLD to South Africans. The bank said the introduction of MyWORLD has elevated it to...

VALR Launches Bitcoin-Rand Trading

VALR, a digital asset trading platform, is planning to launch rand trading, enabling its customers to buy Bitcoin with rand. The company said trading will...

How AI Is Transforming Business Travel

by Anique Drumright It’s no secret that the travel industry has become digital-first over the last several years. In fact, research shows that 60% of leisure and about...

Telkom Accused Of Dirty Tricks Not To Recognise ICTU

A David and Goliath battle is taking place at Telkom, the country's biggest fixed-line telephone group, which has allegedly resorted to dirty tricks against...