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.
Read: Politics to grease the wheels on an MTN, Telkom 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.
Read: After years of flirting, MTN is in talks to buy Telkom
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.
Read: Ex-Icasa chair on MTN, Telkom talks: consolidation is ‘inevitable’
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.
Read: Rain muddies the waters with approach to Telkom
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. — (c) 2022 NewsCentral Media