MTN Sets Its Sights on SA’s 3rd Largest Mobile Operator, Telkom, Netizens Unimpressed by Bid

MTN Sets Its Sights on SA’s 3rd Largest Mobile Operator, Telkom, Netizens Unimpressed by Bid

  • Telecommunications giant, MTN, plans to take over Telkom, according to the two mobile network companies
  • The companies said that discussions are at an early stage, and there is no certainty that the deal will be finalised
  • MTN is at least 15 times larger than Telkom and is also much more profitable than SA's third largest operator

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JOHANNESBURG - Africa’s biggest mobile network, MTN, plans to take over Telkom. The companies released notices stating that discussions into the acquisition are underway.

Business News MTN plans takeover Telkom in talks
MTN plans takeover Telkom and a deal between the companies is underway. Image: Nadine Hutton/Bloomberg
Source: Getty Images

Telkom is the country’s third largest mobile operator, and its shares skyrocketed to 28% after the companies made the announcement. According to Fin24, MTN wants to acquire the company’s entire share capital in return for either shares or cash and shares in the mobile giant.

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However, the telecommunications companies said that discussions are at an early stage, and there is no certainty that the deal will be finalised. While Telkom is older than MTN by three years, the latter doubled the size of the former in terms of cellphone subscribers.

According to Business Insider South Africa, MTN is at least 15 times larger than Telkom due to investors having more faith in its ability to keep growing. MTN is also much more profitable than Telkom.

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South Africans are unimpressed with MTN’s bid to take over Telkom:

@maodiiz said:

“The competition commission must intervene. It’s not like Telkom is struggling.”

@TsohliK wrote:

“MTN has gone downhill in recent years and Telkom actually got a bit better. We can expect Telkom to go downhill if this goes through. Agh!”

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@duppie4x commented:

“Why? I’ve been with Telkom for ages and the service is good and reasonably priced.”

@MSENTIFICATI9N added:

“That means I’ll pay triple my monthly data.”

Telkom data prices in 2022: The most affordable data in Mzansi

In a related matter, Briefly News also reported there are several types of Telkom internet packages for prepaid, hybrid, and post-paid subscribers. Usually, Telkom internet bundles prices vary based on several factors, including price, speed, and validity.

Therefore, understanding some of these factors may come in handy when looking for the ideal package.

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Source: Briefly News

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