By Lehlohonolo Lehana.
Data-only network provider Rain has been instructed to retract a statement that it wants to merge with Telkom.
In a strongly worded statement late on Thursday, the Takeover Regulation Panel (TRP) excoriated Rain for its press announcement about its plans to talk to Telkom’s board about a transaction.
“We wish to inform the market that the announcement was issued by Rain without the prior approval of the TRP as required in terms of regulation 117 of the companies regulations,” the regulator said.
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 (shareholders) and the market are advised to disregard the announcement.”
Rain said, however, that its view is that a request to present to the Telkom board is not notifiable.
Last month, MTN and Telkom announced that they were in early negotiations about a deal that would see MTN buy Telkom in return for shares or a combination of cash and shares.
The TRP reports to the Minister of Trade and Industry. It regulates transactions that involve public companies.