Shares in Telkom rose this week after the company informed investors that it is still in talks with MTN Group about a possible acquisition.
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.
Also Read: MTN hints it could quit Telkom talks over Rain flirtation
“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.
Also Read: Rain muddies the waters with approach to Telkom
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.
Also Read: Telkom receives formal proposal from Rain
