MTN Group is reportedly in talks to buy its telecommunications rival Telkom. According to Bloomberg, the company said the discussions are still at an early stage and there is no certainty that the transaction will be completed.
The news that was announced on Friday morning instantly saw Telkom’s share price soar by 30%.
“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,” MTN said in an announcement.
MTN would pay for the partially state-owned company in shares or a combination of cash and stock, according to a statement the giant telecommunications company released on Friday morning.
According to Moneyweb, news about the buyout was first reported last year with MTN showing interest in acquiring the other telco.
By Zintle Nkohla
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