MTN Allegedly Planning to Take Over Telkom, Combining the 2 Telecommunications Companies
- South Africa's second-largest telecommunications MTN is allegedly planning to buy Telkom, which is worth R29 billion
- Inside sources say MTN has already taken the first step, however, Telkom is not interested in selling its shares
- MTN recently told a news publication that a deal has not been brought forward and Telkom has not responded to the publication
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JOHANNESBURG - Inside sources say MTN, South Africa's second-largest telecommunications company, has its eye set on acquiring Telkom.
MTN is said to have already approached Telkom about a takeover, however, Telkom has shown no interest in selling the company, which is now the third-largest cellphone network firm.
Source: Getty Images
According to Fin24, the negotiations talks between the two telecommunications companies are currently being kept confidential and there is uncertainty on whether or not MTN will continue to pursue Telkom.
MTN has had a great financial year and the company's shares have grown by 117% in value. The company is now valued at R319 billion while Telkom's worth is R29 billion.
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A merger between the two companies would close the gap with competitor Vodacom which has been South Africa's largest telecommunications firm.
MTN and Telkom recently formed a roaming agreement that will allow Telkom users to use MTN's network.
Bloomberg reports that MTN says there is currently no deal brought forward in relation to the acquisition and Telkom has not responded to the claims made by inside sources.
MTN proceeds with plan to sell R3.7 billion worth of shares in Nigeria
Briefly News previously reported that the MTN group has decided to go ahead with their plan to sell their shares in Nigeria, worth R3,7 billion. MTN is the largest telecommunications operator in South Africa.
They announced earlier today that they would proceed in selling their 575 shares in Nigeria through a public offer.
According to SABC News, MTN has already begun exiting other countries, such as Zambia and Uganda, due to the separation between fibre and fintech assets.
News24 reports that MTN shares rose nearly 3.6% this morning on the Johannesburg Stock Exchange (JSE), and they are the best performing shares on the exchange at 138% growth in the past year.
Source: Briefly News
