MTN Group on Tuesday hinted strongly that it could be interested in returning to discussions to buy the partially state-owned telecommunications operator Telkom.

MTN has issued a statement, on the same morning that Telkom published its annual financial results for the 12 months to end-March, in which it said that its rival is a “business with good assets”.

“MTN remains of the view that the offer made in July 2022 would have been good for shareholders of both companies and broader stakeholders,” it said. “There is no offer or official discussions at the moment.”

The statement comes after MTN last year walked away from early-stage talks about a possible transaction after Telkom’s board decided to entertain an offer from wireless broadband upstart Rain. The Rain talks never led anywhere.

More recently, reports have said Telkom has received a proposal from a consortium that includes its former CEO, Sipho Maseko, and Mauritius-based Axian Telecom about buying a majority stake in the company.

Telkom’s shares reversed earlier losses on Tuesday after MTN’s remarks, rising from being more than 6% down on the back of the annual results to being up almost 2% gain in Johannesburg around lunchtime. – © 2023 NewsCentral Media