MTN eyes Telkom acquisition
Telecommunications groups MTN and Telkom have issued a cautionary on July 15 as they enter discussions over the potential acquisition of Telkom by MTN. The discussions surrounding MTN’s acquisition of the entire issued share capital of Telkom in return for shares or a combination of cash and shares in MTN are currently at an early
MTN eyes Telkom acquisition
Telecommunications groups MTN and Telkom have issued a cautionary on July 15 as they enter discussions over the potential acquisition of Telkom by MTN.
The discussions surrounding MTN’s acquisition of the entire issued share capital of Telkom in return for shares or a combination of cash and shares in MTN are currently at an early stage.
The companies point out that there is no certainty that the transaction will 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 in the company’s securities until a further announcement is made,” both Telkom and MTN said in respective statements.
MTN currently has 34.5 million subscribers, making it the second largest mobile operator behind Vodacom. Telkom has 16.9 million mobile subscribers.
Telkom’s share price was up in excess of 25% in mid-morning trade on the JSE, while MTN climbed a percent to R136.26.
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