Telkom shares soar over 26% as MTN wants to buy it

Little financial detail of MTN’s latest proposed offer has been released.
Shoppers push a cart past an advertisement for Telkom outside a Pick n Pay supermarket in a retail mall in Johannesburg. Image: Waldo Swiegers/Bloomberg

Africa’s biggest mobile operator MTN is again looking to buy out Telkom, with it announcing ‘early stage’ plans in a Sens announcement on Friday, which saw Telkom’s share price soaring around 30% in early morning trade.

Telkom’s share price eventually closed 26.08%, at R42.25.

“Shareholders are advised that MTN and Telkom SA SOC Limited [Telkom] have entered into discussions in relation to MTN acquiring the entire issued share capital of Telkom in return for shares or a combination of cash and shares in MTN,” the telecoms giant said.

“Discussions are at an early stage and there is no certainty that the transaction will be consummated,” added MTN.

Telkom also issued a Sens on the offer.

Telkom and MTN share price moves

Read: MTN ranked best mobile network in SA

Whether it will be third time lucky for MTN remains to be seen. More specific financial details of the proposed offer are yet to be revealed.

“The transaction, if concluded, may have a material effect on the price of the company’s securities. Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities until a further announcement is made,” MTN said.

MTN’s share price closed 5.19% up on Friday following the announcement, at R141.87 a share.

In a separate Sens announcement, Telkom also revealed that former MTN CEO Mteto Nyati has been appointed to its board.

Mteto Nyati, MTN, Telkom, Altron

Former MTN CEO Mteto Nyati has been appointed to Telkom’s board. Image: Supplied

Nyati’s appointment is part of a raft of changes to the Telkom board. He is also former CEO of JSE-listed tech group Altron.

Read: Mteto Nyati resigns as CEO of Altron

COMMENTS   1

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Hopefully the beginning of business taking over useless state entities. Who wants to buy the Post Office?

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