Is Qatar going to take over Cell C?
Qatar’s bid to acquire Turkish telecommunications firm Oger Telecom, will have an impact on South Africa.
If the takeover is successful, Qatar will own a 55% stake in Oger Telecom, which has controlling shares in Turk Telecom as well as Avea – and South Africa’s Cell C, which is 75% owned by Oger.
Cell C CEO Alan Knott-Craig (image: Mail & Guardian)
“Qatar has directly approached Saudi Oger – owned by the family of late Lebanese prime minister Rafik al-Hariri – for its approximately 55 percent stake,” Reuters writes.
“It’s a complicated deal but the Qataris have shown their interest by going to the family straight. Going by the strength of their wallet, this is something they could pull off. There is no guarantee that the approach will lead to a deal given heightened execution risk due to market volatility,” a source told Reuters.
Turk Telekom has a market cap of $15.6 billion and any deal could be derailed by Saudi Telecom, which has a 35 percent stake in Oger Telecom and has first refusal.
Charlie Fripp – Online editor