MTN Withdraws Proposal To Acquire Telkom
MTN Withdraws Proposal To Acquire Telkom. Telecommunications giant MTN has announced that it is withdrawing its proposal to acquire Telkom due to Telkom not providing assurance about exclusivity.
The company said in a statement, “MTN terminated discussions in relation to the MTN Proposal on 18 October 2022, as Telkom was not in a position to provide MTN with assurances around exclusivity. Discussions were at an early stage and had not progressedto due diligence nor had a binding offer been received by the Telkom board of directors (‘Telkom Board’). TheTelkom Board has a legal and fiduciary duty to consider all bona fide offers. Shareholders are therefore advisedthat they no longer need to exercise caution when dealing in the Company’s securities.”
MTN Group is Africa’s largest mobile network operator, providing voice, data, fintech, digital, enterprise, wholesale and API services to more than 275 million customers in 19 markets. Its purpose is to enable the benefits of a modern connected life to everyone. Inspired by Africa’s potential, the company is committed to bridging the digital divide, furthering financial inclusion and advancing the attainment of the United Nations Sustainable Development Goals through its core business activities and its support to governments, communities and customers.
Telkom has been the foundation of South African communications for more than 140 years, and it has built a unsurpassed footprint of copper, fibre and wireless technologies in the country. Telkom’s managed data solutions are used by most of the large, corporate and global companies in Southern Africa. Telkom offers broadband internet and voice services to most of the fixed residential and small/medium business customers in the country. MTN also said that Telkom continues to execute its strategy to unlock value for shareholders and will provide an update to the market on progress in due course.
