Bids for Cell C confirmed

Saudi Oger majority-owned South African operator Cell C has confirmed the receipt of a number of takeover bids.

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By  Administrator Published  April 26, 2007

Saudi Oger majority-owned South African operator Cell C has confirmed the receipt of a number of takeover bids.

"Cell C receives offers from time to time, I understand that there has been interest," Cell C chief of corporate affairs Zeona Motshabi said, without disclosing the names of the interested parties.

The operator, South Africa's smallest mobile service provider, has been up and running for six years, but has yet to turn a profit. It posted revenues of US$425million for the six months up to June 2006.

Cellular operators generally make profits after three to five years of operation in Africa, according to Africa Analysis telecoms analyst Dobek Pater. He said he did not see Cell C gaining more than 10% in market share, despite it having a subscriber base of approximately 2.7 million.

Cell C is 60% owned by Saudi Oger, 25% by local empowerment investor Cellsaf, and 15% by investment company Lanun Securities Holdings.

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