Following strong criticism by the Takeover Regulation Panel (TRP), telecommunications operator Rain has withdrawn its press release of 11 August in which it announced a plan to approach Telkom’s board about a merger.
The same day Rain issued the statement to various media houses, including TechCentral, the TRP accused Rain of flouting companies regulations in announcing its plan, saying it did so without permission.
Rain initially refused to withdraw the press release, saying it was seeking legal advice.
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“Following engagement with the Takeover Regulation Panel, at the TRP’s instruction, Rain hereby withdraws its press release of 11 August 2022,” Rain said on Tuesday in a carefully worded statement.
“As Rain, we are pleased with Telkom’s Sens announcement stating that if an offer or formal proposal is received from Rain, the board of Telkom will consider it. Rain intends to submit a formal, non-binding proposal to Telkom in due course. Further details will be published as appropriate in compliance with the takeover regulations,” it said.
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In its statement of 11 August, the TRP said Rain’s announcement was issued “without the prior approval of the TRP as required in terms of regulation 117 of the companies regulations”.
“The announcement was issued notwithstanding the TRP’s instructions to Rain that no such announcement should be made without the prior approval of the TRP.
“Accordingly, the publication of the announcement by Rain is unlawful, and Rain has been instructed to retract the announcement. In the circumstances, all parties (shareholders) and the market are advised to disregard the announcement.”
Rain said initially that its view was that a request to present to the Telkom board was not notifiable.
