MTN, Africa’s largest mobile operator, is in talks with Telkom to take over the company.
Both companies issued shareholder notices on Friday saying that MTN was discussions with Telkom, SA’s third-largest mobile operator, to acquire the entire share capital of the company in return for shares or a combination of cash and shares in MTN.
“Discussions are at an early stage and there is no certainty that the transaction will be consummated,” both telecoms companies said.
Telkom’s share price skyrocketed 28% following the announcement, while MTN climbed nearly 3%.
Government holds at least 40% of Telkom, and the Public Investment Corporation (PIC) around 13%.
Telkom announced earlier on Friday that Mteto Nyati, MTN’s former CEO and the former group CEO of Altron, joined its board as an independent non-executive director.
