Speculation over Cell C takeover plan heats up

File image: IOL
JOHANNESBURG – Rumours of a Telkom takeover plan of struggling Cell C went into overdrive yesterday after the partially state-owned telecoms giant published a cautionary statement advising the market that it was contemplating an acquisition.

Blue Label Telecom, which bought a 45 percent stake in Cell C in 2017 for R5.5billion, also jumped 9.34percenton the JSE to close at R2.81 a share yesterday.

Blue Label has been under pressure since the acquisition, writing down the value of its investment in Cell C to zero in the year ended May.

Telkom shares closed 6.68 percent higher at R66.14 on the JSE yesterday.

Earlier Telkom delivered a robust performance for the six months to September, with revenue increasing 4.7percent to R21.5bn despite South Africa’s weak economic environment .

Source: iol.co.za