Telkom responds to ‘merger’ proposal by rain

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Rain-Telkom deal

by TINTSWALO BALOYI
JOHANNESBURG, (CAJ News) – TELKOM says it has not received any offer or proposal from rain, the data-only network, regarding a merger.

“If an offer or formal proposal is received from rain, the board of Telkom will consider it in accordance with its legal obligations,” Telkom stated.

This is the latest twist in the future of mobile network operator Telkom after it, on July 15, disclosed discussions with MTN Group Limited regarding MTN acquiring the entire issued share capital of Telkom.

This is in return for shares or a combination of cash and shares in MTN.

“Those discussions are continuing and accordingly, shareholders are advised to continue to exercise caution when dealing in Telkom securities,” Telkom stated.

On Thursday, the Takeover Regulation Panel (TRP) noted “with grave concern” a press announcement issued by rain regarding a potential offer to merge with Telkom.

TRP stated the announcement was issued by rain without the prior approval of the panel as required in terms of Regulation 117 of the Companies Regulations.

Furthermore, it stated, the announcement was issued notwithstanding the TRP’s instructions to Rain that no such announcement should be made without the prior approval of the TRP.

“Accordingly, the publication of the announcement by Rain is unlawful, and Rain has been instructed to retract the announcement. In the circumstances, all parties (i.e., shareholders) and the market are advised to disregard the announcement.”

Telkom is South Africa’s third largest operator, after Vodacom and MTN.

– CAJ News

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