South African fixed-line telecommunication provider Telekom confirmed on Monday recent rumors that it is in talks to buy Cell C, the country’s third-largest mobile operator.
In a statement on its website, Telekom advised its shareholders that the company is in the midst of “discussions regarding a potential transaction to acquire all of the shares of Cell C (Pty) Ltd.,” and said the successful completion of a deal might impact the price of Telekom’s securities.
According to a Reuters report, the deal would bring Telekom nearly 20 million wireless users. Price details of the potential acquisition have yet to be released.
Monday’s announcement is consistent with previous comments from Oger Telecom South Africa – which owns 75 percent of Cell C – stating it would consider selling its stake in the carrier.
The move comes as Cell C has worked to improve its network in the face of backlash against slow speeds. In September, the carrier announced the rollout of LTE service in the areas of Gauteng and KwaZulu-Natal following an investment of $139 million (2 billion South African Rand) in 2015. The company said it expects to spend an additional $418 million (6 billion Rand) to complete its LTE rollout over the next two years.
As of 5 p.m. local time in Johannesburg, Telekom stocks were up just over one percent on the news.