By Zuko Komisa
The largest mobile operator in Africa, MTN, is in negotiations to acquire Telkom.
MTN has informed its shareholders that it is in talks to purchase the entire issued share capital of Telkom in exchange for shares or a cash and share combination.
MTN said in a statement on Friday (15 July) that talks are in the early stages and there is no guarantee the transaction will go through.
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MTN wrote, “The transaction, if concluded, may have a material effect on the price of the company’s securities.”
“Accordingly, shareholders are advised to exercise caution when dealing in the Company’s securities until a further announcement is made. Discussions are at an early stage and there is no certainty that the transaction will be consummate” read the statement.
What could MTN’s proposed Telkom takeover deal mean for SA’s telecoms sector?
Kaya Biz with Gugulethu Mfuphi spoke Dobek Pater, telecoms analyst at Africa Analysis to unpack this proposed deal.
LISTEN TO THE FULL CONVERSATION HERE:
okay this is huge – MTN looking to acquire all of the share capital of Telkom pic.twitter.com/4b3BofDgoR
— Don Petty Cash (@iamkoshiek) July 15, 2022
According to Business Tech, given the size of the two businesses and their dominance in the industry, the acquisition is expected to come under close examination from the Competition Commission and other regulators.
MTN is currently the second-largest mobile operator behind Vodacom with 34.5 million members. 16.9 million people use Telkom’s mobile service.
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