Telkom Terminates Acquisition Discussions With Rain
Telkom Terminates Acquisition Discussions With Rain. South African telecommunications company Telkom has released a statement stating that the discussions for it to acquire Rain have been terminated. Rain network made a proposal to Telkom last year for it to be acquired as it intends to compete with Vodacom and MTN.
The statement read, “Further to the SENS announcement dated 30 September 2022 in relation to a non-binding proposalreceived from Rain, Telkom shareholders are advised that Telkom and Rain have terminated discussionsin relation to Rain’s proposal of the potential acquisition of Rain by Telkom for newly issued shares inTelkom. After initial discussions, but prior to any due diligence, the parties have decided that a suitable transactionis not possible at this time. Telkom continues to execute its strategy to unlock value for shareholders and will provide an update onprogress in this regard in due course.”
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.
Rain also made the proposal to Telkom as it also wants to accelerate its 5G rollout throughout the country and Rain wanted to use the network fibre of OpenServe, Telkom’s subsidiary, to further accelerate its 5G rollout plan. Rain was launched in 2016, becoming SA’s first data only network. Its mission is to make data more accessible to more people, because with access to an abundance of affordable internet, South Africans can do great things.
