BusinessNewsTelecom

MTN Group linked with Telkom South Africa buy

1 Mins read

MTN Group has reportedly decided to buy South Africa’s Telkom, however, Telkom has so far shown no interest in a sale, while it remains unclear whether the larger rival will continue its pursuit, the sources said. 

As such, Telkom has so far rejected MTN’s proposals, and “it remains unclear” whether MTN will continue with the pursuit of its smaller rival.

South African multinational mobile telecommunications company is said to have made a bid for Telkom on at least two occasions in the past, dating back at least a decade.

TechCentral took notice in May last year of an apparent informal approach by MTN to Telkom, however, the result of such an approach has been not up to the standards.

“Telkom has so far shown no interest in a sale, said the people, who asked to remain private as the talks are confidential,” Bloomberg News reported. Telkom said that “there is no deal on the table in relation to this matter”.

In parallel, TechCentral understands that MTN Group chairman Mcebisi Jonas is pushing for the deal to happen, though there is scepticism that it would pass regulatory muster.

Any proposed transaction is likely to meet strong resistance at the Competition Commission, which would have to approve it. The communications regulator, Icasa, would also have to be involved in granting approval to a deal that could be seen to reduce competition in South Africa’s telecommunications industry.

Telkom has a market capitalisation of R28.6-billion. A successful offer would likely have to value the business at a premium to that figure, in addition to having a deal requiring buy-in from the government, which retains a 40 per cent stake in the company.

It is worth mentioning that the Public Investment Corporation the investment manager for public servants’ pensions – owns a further 14 per cent of Telkom’s equity. 

Source: TechCentral

Related posts
CommentaryFeaturedInnovationNewsOpinionsReportStartups

Re-Opening The Economy: What It Means For StartUps in Uganda

2 Mins read
While addressing the nation on December 30, 2021, President Yoweri Museveni lifted the two-year lockdown and fully opened all the sectors of…
FintechNewsReportStartups

Numida becomes the first Ugandan startup accepted into the YCombinator Accelerator

1 Mins read
Numida, a Ugandan fintech startup has been named among the Winter 2022 batch of the American technology startup accelerator, YCombinator. The startup…
EnergyInnovationNewsStartupsTransport

Opibus launches Kenya's first locally-made Electric Bus

2 Mins read
Opibus has just introduced the first all-electric bus in Kenya, completely designed and developed in Africa. This is the first major step…
Get a bi-weekly digest newsletter

Get the top stories directly in your email weekly.

Leave a Reply

Your email address will not be published. Required fields are marked *