Share

Rumours of Telkom, Cell C merger

Johannesburg - Shares of Telkom [JSE:TKG] have jumped on speculation that the struggling telecom firm could merge with unlisted Cell C.

Business Day reported on Monday that senior executives at both companies have held meetings about a potential merger, citing a source.

Both firms have been struggling to keep up with bigger rivals Vodacom and MTN.

Telkom, the former state-run utility, is still about 40% directly owned by the government. Its mobile service, the smallest of the four major carriers, has battled to win market share.

Cell C needs Telkom’s extensive infrastructure for its planned expansion, the source told Business Day.

Telkom spokesperson Pynee Chetty said there have been no formal talks by the two operators over the issue.

“There has been not any formal approach between Telkom and Cell C and it would therefore be unwise and premature to speculate on the desirability to consolidate between the two players,” he said.

Cell C’s Chief Executive Alan Knott-Craig said in a statement: “There will be some form of consolidation or partnership in the industry in the near future.

"However, any decisions on consolidation or future partnerships involving Cell C would be for our shareholders to decide upon.”

Telkom shares rose as much as 3.75% in intraday trading to R19.75, adding to a 5.6% gain in the previous session, before succumbing to profit-taking.

By 14:20 the shares were trading hands at R18.76, down 1.26% on the previous day's close.
 
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.01
-0.4%
Rand - Pound
24.13
-0.1%
Rand - Euro
20.62
-0.1%
Rand - Aus dollar
12.38
+0.3%
Rand - Yen
0.13
+0.5%
Platinum
901.05
-0.2%
Palladium
999.00
-0.7%
Gold
2,149.87
-0.5%
Silver
24.84
-0.8%
Brent Crude
86.89
+1.8%
Top 40
65,953
-0.5%
All Share
72,165
-0.4%
Resource 10
53,256
-0.1%
Industrial 25
99,523
-1.0%
Financial 15
16,664
+0.3%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders