Africa-Press – Mauritius. SOUTH AFRICAN Telecommunications companies MTN and Telkom told their shareholders that they have entered into a formal discussion with view to MTN buying Telkom.
In similar statements released on the Johannesburg Stock Exchange on Friday, both companies said the discussions were about MTN acquiring the entire issued share capital of partially state-owned Telkom, in return for shares or a combination of cash and shares in MTN.
If the deal goes through, MTN will have to buy out the government, as it holds a 40% stake in Telkom, while the Public Investment Corporation owns a further 14% of Telkom’s equity.
The companies said the discussions were at an early stage, and there was no certainty that the transaction would be consummated. “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 with the company’s securities until a further announcement is made,” they added.
In its latest results, MTN announced that it had left Yemen and Syria to simplify its portfolio and focus on a Pan-African strategy under its Ambition 2025 plan.
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