On Tuesday (October 04th), Telkom South Africa shares increased after the partially state-owned telecommunications operator informed investors that it is still in talks with MTN Group about a potential acquisition transaction.
In a statement, the operator renewed its cautionary announcement about the talks, which could see MTN buying it out in a cash- and share-based deal. Telkom said, “The MTN proposal is still under consideration by both parties.”
Last week MTN hinted it could quit its talks with Telkom after the latter’s board signalled an apparent willingness to engage a separate proposal from wireless broadband operator Rain.
In a statement, MTN said its board had written to Telkom’s board concerning Telkom’s announcement that it was considering Rain’s proposal.
“A further announcement will be released by MTN, setting out its position regarding the future of the transaction,” the statement read.
Telkom’s decision to renew its cautionary caused the company’s shares to firm. Telkom shares traded at US$2.75 each, up 2.9 per cent on the session. They’d earlier traded as high as US$2.79.