Shares in Telkom firmed on Tuesday after the partially state-owned telecommunications operator informed investors that it is still in talks with MTN Group about a transaction.
In a statement issued via the JSE’s stock exchange news service (Sens) at 9.32am on Tuesday, Telkom renewed its cautionary announcement about the talks, which could see MTN buying it out in a cash- and share-based deal.
“The MTN proposal is still under consideration by both parties,” Telkom said.
MTN last week hinted it could quit its talks with Telkom after the latter’s board signalled an apparent willingness to engage a separate proposal from wireless broadband operator Rain.
Last Friday, MTN said in a Sens statement that its board had written to Telkom’s board about Telkom’s announcement, earlier that same day, that it was considering Rain’s proposal.
“A further announcement will be released by MTN, setting out its position with regards to the future of the transaction,” it said, suggesting it was prepared to walk away from the talks.
Telkom’s decision to renew its cautionary caused the company’s shares to firm, although it was largely in line with a broadly positive JSE on Tuesday. The shares were last quoted at R48.56 each, up 2.9% on the session. They’d earlier traded as high as R49.38. – © 2022 NewsCentral Media