South African telecom operator Telkom SA aims to acquire mobile operator Cell C Pty Ltd for 18 billion rand ($1.28bn), a person familiar with the matter told Bloomberg. This sum is significantly less than the 22 billion rand that the current owner of Cell C, Dubai-based Oger Telecom, values the unit at.
Telkom, which is South Africa’s biggest landline operator also operates the country’s fourth biggest mobile operator. The company is keen to grow its mobile business to offset losses in the fixed-line unit, the report added.
Oger Telecom owns 75% of Cell C, which is South Africa’s third largest mobile operator after Vodacom and MTN.