MTN Group Limited, a South African multinational mobile telecommunications company, is in talks to buy Telkom in a stock or cash-and-shares deal.
“Discussions are at an early stage, and there is no certainty that the transaction will be consummated,” the companies said in separate statements on Friday.
If the transaction is successful, it would give MTN access to Telkom’s Openserve fibre business, which made 1$782 million in revenues for the year ended March 31.
“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.
MTN currently has 34.5 million subscribers, making it the second largest mobile operator behind Vodacom. Telkom has 16.9 million mobile subscribers.
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