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Telkom, MTN confirm they’re talking

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It's official: MTN is negotiating to buy Telkom's fixed line business; and the national telecommunications operator is looking to shed its stake in Vodacom. 

The sale of Telkom's stake in Vodacom to UK operator Vodafone has long been current in the market, but reports on a sell-off of its fixed line assets first emerged this weekend.
The negotiations have since been confirmed, with both MTN and Telkom posting cautionary statements on the JSE's SENS service yesterday afternoon.
The MTN statment reads: "MTN is in discussions with Telkom SA Limited which may or may not result in a transaction involving certain assets of Telkom. It should be noted that these discussions are at a very preliminary stage.
"Should the proposed transaction materialise, it may have an impact on the MTN share price."
MTN has already begun laying its own fibre optic landline cable and will unveil a pilot network between Sandton and Rosebank on Friday.
Telkom's fixed line assets would be a major boost for the operator.
Once Icasa grants certain operators infrastructure licenses – possibly before the end of this year – there could be a scramble to secure infrastructure assets like Telkom's fixed lines.
Telkom, meanwhile, has confirmed that it has entered into discussions with both Vodafone Group and MTN.