More Africa NewsMTN, Telkom say they remain locked in deal talks

August 22, 2022by myles0

In separate but identical regulatory filings on Monday, MTN Group and Telkom said they remained locked in discussions about a potential combination of their businesses.

The routine filings, required periodically under JSE rules when companies are under “cautionary”, follow the stunning announcement in mid-July that they were in talks about a deal.

Despite potentially insurmountable regulatory and political hurdles, MTN has proposed acquiring the entire issued share capital of Telkom in return for shares (or a combination of cash and shares) in MTN.

Less than a month after MTN’s initial approach, challenger telecommunications operator Rain said on 11 August that it planned to table a proposal to Telkom that it should merge with Rain instead of pursuing a deal with MTN.

However, Rain quickly found itself in trouble and was forced to retract its media statement about its intentions after it received a lashing from the Takeover Regulation Panel. Rain still intends to approach Telkom’s board with its proposal, it later said.

Meanwhile, on 12 August, a day after the Rain announcement, it emerged that government had received an unsolicited bid worth R7-billion for its 40.5% stake in Telkom from an investment firm called the Toto Consortium. 

Source: Tech Central

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