Rain Group Holdings has made a formal proposal to acquire Telkom.
This follows an offer on 15 July from MTN acquiring the entire issued share capital of Telkom in return for shares or a combination of cash and shares in MTN.
Rain also made an offer in August, which is was forced to retract. However, it has now submitted a non-binding offer, in terms of which Rain proposes the potential acquisition of Rain by Telkom for newly issued shares in Telkom.
The Telkom board is evaluating the Rain proposal and has stated in a SENS announcement that it is not yet in a position to express a view on it.
Since news of the proposed MTN takeover broke on 15 July 2022, Telkom has received a number of other approaches, including one from local investment firm Toto Consortium of $433-million for government’s 40,5% shareholding.
Update:
MTN has weighed in on the Rain proposal, sending a letter to the Telkom board with its comments, which Telkom has promised to address in due course.
“A further announcement will be released by MTN, setting out its position with regards to the future of the transaction [it’s offer to buy Telkom],” according to a SENS announcement this afternoon.