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Telkom shares jump as Cell C deal off the table

Published: 2019-11-29 07:30 +02:00 by Duncan McLeod tag: news

JSE:TKG JSE:JSE JSE:BLU JSE:ISA

Shares in Telkom soared shortly after markets opened in Johannesburg on Friday as investors took cheer from the fact that the it won’t be burdened with rival Cell C’s debt problems.




Shares in Telkom soared shortly after markets opened in Johannesburg on Friday as investors took cheer from the fact that the partially state-owned telecommunications operator won’t be burdened with rival Cell C’s debt problems.
Telkom said at 8am, before trading on the JSE commenced, that its offer to buy Cell C — the value of which was not disclosed — was rejected by the mobile operator’s board.
Telkom said investors no longer needed to exercise caution in dealing in its securities, suggesting it does not intend pursuing a hostile bid for the company.
Shares in Telkom were trading about 5% higher shortly after 9am (they closed the day up 3.9% at R46.89. Shares in Blue Label Telecoms, which owns 45% of Cell C, were slightly softer, down 0.6% (they rallied later to close up 3.9% at R3.24).
The decision by the Cell C board to spurn Telkom’s overtures now paves the way for a recapitalisation of the business in a transaction led by the Buffet Consortium and other, unnamed investors. Cell C is labouring under about R9-billion in interest-bearing debt.
The operator’s new management team, led by CEO Douglas Craigie Stevenson and chief financial officer Zaf Mahomed, has said previously that it expects the recap to be concluded by the end of the year. — (c) 2019 NewsCentral Media
 





Blue Label Telecoms Buffet Consortium Douglas Craigie Stevenson Telkom top Zaf Mahomed

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Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
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