South Africa’s third-largest mobile operator Cell C has hired Goldman Sachs to review its strategic options, including a potential sale to larger rivals, according to a Bloomberg report citing unnamed sources.
Cell C, majority-owned by Dubai-based…
South Africa’s third-largest mobile operator Cell C has hired Goldman Sachs to review its strategic options, including a potential sale to larger rivals, according to a Bloomberg report citing unnamed sources.
Cell C, majority-owned by Dubai-based Oger Telecom, has been struggling to compete against Vodafone-controlled market leader Vodacom and carrier number two MTN, rumoured to be in takeover talks with the country’s fourth player, partly state-owned Telkom.
Oger Telecom, the telecoms unit of Saudi Oger, did not respond to a request for comment, but the Bloomberg report quoted a spokesperson for the company as saying it is fully committed to Cell C and its growth plans, and has invested US$450m in the business over the past two years.
Last November, Cell C CEO Jose dos Santos reportedly told local MPs that there was a strong possibility Cell C would not survive if certain deals got regulatory approval.
He pointed to the planned merger between Vodacom and local fixed-line player Neotel, which the incumbent agreed to buy last May, and the ongoing negotiations between Telkom and MTN over a network sharing agreement.
Last August, Cell C sought bondholders’ permission to extend to 2018 the maturity of its €160m (US$215m) senior secured notes due July 2015.
At the time, CEO Dos Santos said in a statement that the move would allow Cell C to “channel equity and cash generated in the business to increase its capacity to continue to grow the company”.
