by Staff Writer
After a week of speculation that Telkom, South Africa’s incumbent fixed-line telephone group, may be interested in reviving talks to buy Cell C, which is in a process of being recapitalized by Blue Label Telecoms, the country’s third-biggest mobile phone operator is not going to be owned by Telkom.
Within few days of being mum about the media speculation that Telkom has tabled an offer to buy Cell C, its chairman Mohammed Hariri said on Thursday that Cell C has rejected Telkom’s proposal.
Media speculation suggested that Telkom has tabled a $1 billion offer to buy Cell C.
Hariri said on Wednesday that the Cell C’s board has the responsibility to be transparent and keep staff, customers and stakeholders informed regarding this media commentary.
He confirmed that the board has received an unsolicited, non-binding and conditional proposal from Telkom in respect of Cell C.
“The board has therefore informed Telkom Limited, following a board meeting on Wednesday, that it is unable and not willing to pursue any discussion and has rejected its proposal,” said Hariri in a statement.
He reiterated that Cell C has already entered legally binding agreements in terms of which it has committed to a recapitalisation transaction with Blue Label Telecoms.
“Among other things, Cell C has undertaken to not enter any agreement, incur any obligation, or take any action which may restrict it or any of its affiliates from complying with its obligations under such agreements or which could result in the transactions envisaged in such agreements not proceeding to completion,” he added.
Hariri added that Cell C has every intention of complying with its obligations under such agreements.