The idea of a pan-African telecoms champion that has a large shareholding by the South African government looks likely to grease the political wheels of MTN’s audacious bid to buy Telkom.
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MTN Group has entered into discussions to acquire Telkom. The talks are at an early stage, the parties said, and might not result in a deal.
Keabetswe Modimoeng said MTN Group’s proposed acquisition of rival Telkom should be considered seriously by regulators.
Mteto Nyati, a former CEO of MTN South Africa and until recently group CEO of Altron, has joined the board of Telkom.
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Telkom has launched two new mobile plans, Infinite and FlexOn, that it hopes will energise interest among consumers.
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Telkom Group CEO Serame Taukobong said he has zero interest in buying smaller rival Cell C, making it clear that no deal will happen on his watch.
Telkom is considering all “viable” options for its towers and masts business, Swiftnet, including the sale of a majority stake in the company.
Telkom has reported a decline in full-year revenue of 1.1%, to R42.8-billion. It has blamed tough competition and the weak state of the economy.