MTN confirms talks with Telkom still on track

MTN has confirmed that talks with Telkom to possibly acquire share capital in return for shares are still ongoing.

In a cautionary statement on the JSE Sens news service, MTN also advised shareholders to continue to exercise caution when dealing with the company’s securities.

“Further to the cautionary announcement dated 15 July 2022 in relation to MTN and Telkom SA entering into discussions relating to MTN acquiring the entire issued share capital of Telkom in return for shares or a combination of cash and shares in MTN (the Transaction), shareholders are advised that discussions are still in progress which, if successfully 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.

“The board of directors of MTN accepts responsibility for the information contained in this announcement and certify that, to the best of their knowledge and belief, such information is true, and that this announcement does not omit any facts that would make any of the information false or misleading or would be likely to affect the importance of any information contained in this announcement.”

This comes after African Rainbow Capital-owned Rain was forced to retract a premature statement where it stated it had submitted a proposal to the Telkom board.

Rain stated it had requested to present a proposal to merge following talks between Telkom and MTN about a possible ‘takeover.’

Rain stepped in to put a spanner between Telkom and MTN after reports of Telkom being a takeover target of MTN.

The proposal highlighted how a Rain and Telkom merger would create a third player to compete with telecom giants Vodacom and MTN.

Rain confirmed the statement publicly only to find that Department of Trade and Industry’s panel found it to be premature and unlawful.

Also read: Rain, MTN tug-of-war over Telkom

Feature image: MTN/Stock image