MTN moves to acquire Telkom

The MTN Group is in negotiations to acquire Telkom, a South African telecommunications company. It informed its shareholders that there were plans to buy out Telkom’s full issued share capital in exchange for shares or a cash and share combination.

MTN said in a statement that talks are in the early stages and that there is no guarantee the transaction would go through.

“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.

The discussions were confirmed by Telkom in a separate statement made to shareholders. Given the size of the two businesses and their market domination, the acquisition will be closely examined by the Competition Commission and other regulators.

MTN is currently the second-largest mobile operator behind Vodacom with 34.5 million members. 16.9 million people use Telkom’s mobile service.