MTN is Planning to Buy Telkom

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MTN is Planning to Buy Telkom

MTN Group (JO: MTNJ ) is reportedly in talks to buy its telecommunications rival Telkom (JO: TKGJ ). According to Bloomberg, the company said the discussions are still at an early stage and there is no certainty that the transaction will be completed.

The news that was announced on Friday morning instantly saw Telkom’s share price soar by 30%.

“Shareholders are advised that MTN and Telkom SA SOC Limited [Telkom] have entered into discussions in relation to MTN acquiring the entire issued share capital of Telkom in return for shares or a combination of cash and shares in MTN,” MTN said in an announcement.

MTN would pay for the partially state-owned company in shares or a combination of cash and stock, according to a statement the giant telecommunications company released on Friday morning.

According to Moneyweb, news about the buyout was first reported last year with MTN showing interest in acquiring the other telco.

By Zintle Nkohla

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  • Ashraf Vawda @Ashraf Vawda
    It should not happen. That will see the end of competition in the industry. Something the corporations strive for but the consumer suffers with. We need the balance to remain indefinitely without collusion.
    Like 0
  • kganya Nchabeleng @kganya Nchabeleng
    telkom market value has decreased so ,MTN will help the telecommunications company to improve its market share on the stock market and also gain more customers especially in african countries
    Like 0
  • Nzwakele Mbuyazi @Nzwakele Mbuyazi
    Ramaphosa is now fast tracking the sale if state assets, since his future as the president is at stake
    Like 5
    • Ashraf Vawda @Ashraf Vawda
      @Nzwakele Mbuyazi How true. What a rubbish guy for trying to throw healthy competition down the drain. These guys can not get full.
      Like 0

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