South Africa's Telkom scraps plans to buy Cell C - CNBC Africa

South Africa's Telkom scraps plans to buy Cell C

Southern Africa

by Reuters 0

South Africa's Telkom scraps plans to buy Cell C. Photo: Wikimedia

South Africa's Telkom called off talks to buy mobile phone operator Cell C from Oger Telecoms after the pair failed to agree on a price, fixed line phone company said on Thursday, as shares rose.

Shares in Telkom rose 7.7 percent to 66.19 rand, outpacing the rise 1.09 percent gain in Johannesburg All-Share index.

"Through Telkom's engagement with Oger Telecoms in relation to Cell C, it has become clear that there is a difference between the parties on the assessment of value of the proposed transaction," Telkom said in a statement.

Buying Cell C would have given Telkom about 20 million mobile phone users but also a company facing a consumer backlash due to slow network speeds.

The company said on Nov. 9 it was in talks to buy Cell C to boost its fledging mobile phone business.

Comments