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Telkom considers $1bn bid for Cell C - sources

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Cell C may be sold as the majority shareholder looks to offload its shares. (Duncan Alfreds, Fin24)
Cell C may be sold as the majority shareholder looks to offload its shares. (Duncan Alfreds, Fin24)

Johannesburg - Telkom is considering a bid of as much as $1bn (R13.16bn) for wireless operator Cell C, which has missed debt payments and is trying to complete a recapitalisation, according to three people familiar with matter.

Investment banks are also approaching other potential bidders with the firepower to take on the deal, said two of the people, who asked not to be identified as the matter is private. Blue Label Telecoms agreed to buy a 45% stake in Cell C last year, but the deal has yet to be completed a week before the end-February deadline.

“The Cell C recapitalisation remains on track and is supported by the equity investors as well as the existing lenders to the business,” Karin Fourie, a spokesperson for Cell C, said by email on Tuesday. “All lenders have expressed their support for this process, which remains ongoing.”

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