MTN is to acquire 100% of service provider i-Talk Cellular, having agreed to buy up the balance of the shares it doesn't already own.
I-Talk Celluialr is based in Durban, with offices in Johannesburg and Cape Town. It has 11 company-owned stores and a dealer network of nearly 100 outlets nationally.
MTN currently holds 41% of the issued shares in i-Talk Cellular. In terms of the existing shareholders’ agreement governing i-Talk cellular, MTN has exercised its pre-emptive rights and signed an agreement with the Bebinchand Seevnarayan Trust to acquire the 59% of i-Talk Cellular that it currently holds. The transaction is subject to competition authority approval.
The proposed acquisition of i-Talk Cellular is the second deal to be announced by MTN recently.
Earlier this week, MTN announced that it had entered into an agreement with Verizon Business, part of US-based Verizon Communications, to acquire 100% of ISP Verizon Business South Africa. The acquisition will bolster the scale and product offering of MTN’s existing South Africa-based ISP, MTN Network Solutions, while strengthening regional presence.
“These two acquisitions are in line with our strategic vision and will add value to our business,” says MTN SA MD, Tim Lowry.
“Through these deals we are enhancing our value proposition, building capacity and broadening our reach to enhance our product and service offerings to customers and clients. The i-Talk Cellular acquisition will strengthen our distribution across South Africa,” Lowry adds.