Telkom and Dubai-based Saudi Oger Telecoms on Thursday terminated their talks for a deal to sell Cell C to South Africa’s fixed-line telephone group. By Staff Writer
Telkom informed investors on November 9 2015 that it was in talks to buy Cell C .
But On Thursday Telkom said the deal talks were called off after the telco performed due diligence on Cell C.
“Shareholders are now advised that Telkom and Oger Telecoms have mutually agreed to terminate these discussions,” Telkom informed investors on the JSE.
The main hurdle to the deal was not disclosed to investors on the JSE, but Telkom issued a media statement stating that the talks collapse due to failure to agree with Oger Telecom on how to value Cell C.
“Through Telkom’s engagement with Oger Telecoms in relation to Cell C, it has become clear that there is a difference between the parties on the assessment of value of the proposed transaction. As no agreement has been reached, Telkom and Oger Telecoms today agreed to end all discussions,” Telkom said in a statement.
Three months ago, Oger Telecom’s chief legal officer and Deputy CEO Mazen Abou Chakra revealed to Business Day that six groups had approached the Dubai-based firm with interest in acquiring their stake in Cell C.
Market talk has suggested that Oger Telecom was asking a R20 billion price tag on Cell C.
