Johannesburg - Telkom, the country's biggest fixed-line operator, is considering acquiring Cell C’s debt as it seeks to gain access to subscribers of the nation’s third-largest cellphone company.
Cell C creditors approached Telkom to help reorganise debt that includes R8.7 billion of bonds maturing in July 2018, said sources, who asked not to be identified because discussions are private.
Telkom, whose attempts to start talks were rejected by Cell C last week, is trying to gain access to the company’s financials ahead of a possible offer, one of them said.
Read also: Cell C rejects Telkom proposal
Creditors to Cell C include Industrial and Commercial Bank of China, China Development Bank, Development Bank of Southern Africa and the Nedbank Group, they said. DBSA and Nedbank declined to comment, while ICBC and China Development Bank didn’t respond.