By Lehlohonolo Lehana.
MTN has responded to a statement from Telkom relating to an offer from data network provider Rain that Telkom purchase the group.
Telkom said in a statement on SENS that it had received the offer from Rain in mid-September.
“Shareholders are advised that Telkom received a non-binding proposal from Rain on 14 September 2022, in terms of which Rain proposes the potential acquisition of Rain by Telkom for newly issued shares in Telkom,” the company said in a SENS announcement on Friday.
The company said its board was evaluating the Rain proposal and was not yet in a position to express a view on the matter.
In a statement of its own, MTN – which is currently also in discussions with Telkom over a potential buyout that would see MTN acquiring the entire issued share capital of Telkom in return for shares or a combination of cash and shares in MTN – said its board has addressed a letter to the board of Telkom containing its thoughts on the matter.
“The board of directors (Board) of MTN has considered the pre-closing statement issued by Telkom in which it refers to a non-binding proposal that Telkom has received from Rain.
“Based on such announcement, the Board of MTN has addressed a letter to the Board of Telkom containing MTN’s comments thereon. When MTN receives a response from Telkom, a further announcement will be released by MTN, setting out its position with regards to the future of the transaction,” it said.
The group advised shareholders to continue to exercise caution when dealing in the company’s securities until a further announcement is released.