According to a recent report by ITWeb, struggling telco Cell C is in possible buy-out talks with China Mobile.
It is rumoured negotiations are underway, and the company told ITWeb that it “is willing to talk to anyone wanting to stabilise the company”.
China Mobile has been pursuing expansion in Africa for some time. A year ago, the world’s largest carrier opened its South African office in Johannesburg.
However, Cell C CEO Douglas Craigie Stevenson reported told ITWeb that Cell C is not considering a merger.
Summary of the situation
- Last month Cell C reported a loss of R8-billion
- Top bosses have reiterated that the company is open to any potential buyers
- Blue Label Telecoms, who owns 45% of the telco, says they do not know whether their shareholding will be maintained or reduced
- Other Cell C shareholders include 3C Telecommunications with 30%; Net1, which owns 15%; while 10% is held by Cell C management and staff
- Reasons for Cell C’s debt include freezing jobs, declining revenue, debt management challenges and three downgrades by rating agency Standard & Poor