There were more reports this morning that landline operator Telkom could be looking at buying cellphone operator Cell C.
Cell C’s main owner, Oger Telecom has hinted it could be looking for bids. A controlling stake in Cell C, SA’s third-largest cellular operator, is allegedly up for grabs after Saudi Arabia’s Oger Telecom appointed Goldman Sachs to evaluate bids for its 75% holding.
Stephen speaks to Tech Central's Duncan McLeod about what this bid entails and whether this is a wise decision.
Mcleod says that if they were to look at this deal, it would benefit Telkom, particularly as Telkom Mobile doesn't have a big stake in the cellphone operator market. The market has historically been dominated by Vodacom and MTN, with Cell C having a bit of the market share. Telkom's acquiring a stake in Cell C would bulk up their share (which is currently at 2%).
Listen to the conversation below:
This article first appeared on 702 : Telkom would benefit from buying Cell C