The acquisition is Cell C by Telkom is back on the table.

Telkom earlier this week issued a cautionary announcement, which it today amplified to advise shareholders that the organisation is in discussions with Cell C about a potential acquisition.

According to the statement, Telkom has substantially concluded its due diligence, although discussions are at a preliminary stage.

A potential acquisition would be subject to Cell C completing a financial restructuring to ensure that its gearing levels are reduced to a sustainable level as specified by Telkom, and commercial contractual relationships are renegotiated to terms acceptable to Telkom.

An aquisition would also be subject to a number of regulatory approvals.

This isn’t the first time a Cell C acquisition by Telkom has been mooted.

In February 2017, a proposal was made to the Cell C board, which rejected it.

At that time, Cell C had committed to a recapitalisation transaction with, among other parties, Blue Label Telecoms.

The amount of the acquisition that was being kicked around in early 2017 was R13-billion, and analysts believes there would be a lot of merit in the move.