More Africa NewsTelkom moves to assure MTN merger still on the table

October 5, 2022by myles0

Telkom has moved to assure MTN that its proposal is still under consideration despite Rain’s recent overture to tie-up with the telephony group.

“The MTN proposal is still under consideration by both parties. The MTN proposal, if concluded, may have a material effect on the price of the company’s securities. Accordingly, shareholders are advised to continue to exercise caution when dealing in the company’s securities until a further announcement is made,” Telkom notified investors.

The company’s word of honour to MTN comes on the back of a recent letter from Africa’s largest mobile operator to Telkom raising concerns about its dance with Rain.

The race to buy Telkom went into overdrive last week when, after Rain’s official request to merge with the company, MTN issued a cautionary statement concerning the duo’s flirtation.

“Based on such announcement, the board of MTN has addressed a letter to the board of Telkom containing MTN’s comments thereon. MTN received a response from Telkom, advising it will respond to the MTN letter more fully in due course. A further announcement will be released by MTN, setting out its position with regards to the future of the transaction.”

The potential takeover of Telkom has sparked industry-wide debate, as the telephony group is increasingly becoming attractive to the different suitors because of its extensive infrastructure, which is the golden goose in the ongoing battle in the fibre market.

Telkom’s Openserve currently connects 400 000-plus homes to its fibre network, and the telephony group’s data centres and business operations are also an attraction.


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