"Discussions are at an early stage and there is no certainty that the transaction will be consummated. The transaction, if concluded, may have a material effect on the price of the company’s securities. Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities until a further announcement is made," MTN said in a Sens announcement.
Other sources indicate that this is not the first time MTN has notified its shareholders of a possible acquisition of Telkom. MyBroadband reported that the two parties have held similar discussions since 2014, with MTN offering to buy Telkom’s radio access network.
In 2015 the Competition Commission warned that a merger MTN and Telkom would likely 'entrench a duopolistic market structure dominated by Vodacom and MTN'.
Bloomberg reported that MTN approached Telkom in November 2021. "Telkom has so far rebuffed MTN’s proposals, the news wire said (paywall), and “it remains unclear” whether MTN will continue with its pursuit of its smaller rival," the publication said at the time.
Former Telkom CEO Sipho Maseko said he did not consider such a deal. However, he said such a deal could receive regulatory approvals if the remedies package were structured correctly. “Consolidation is inevitable at some point in the market — probably in the next two years or so,” said Maseko.
