Telkom informed investors today that it has received a non-binding offer from data-only network provider Rain.
In a statement, Telkom said it was proceeding with its strategy to unlock value for its shareholders, underpinned by the view that its share price does not reflect its intrinsic value.
“The Telkom Board of Directors, conscious of economic and market dynamics and in accordance with its legal obligations, is considering various strategic options, including non-binding merger and acquisition proposals received to date.”
The company added: “Further to the SENS issued by Telkom on 12 August 2022, shareholders are advised that Telkom received a non-binding proposal from Rain on 14 September 2022, in terms of which Rain proposes the potential acquisition of Rain by Telkom for newly issued shares in Telkom”
Telkom said its board was evaluating the Rain proposal and “is not yet in a position to express a view thereon”.
Also read: Rain Retracts Telkom Merger Statement
Data-only network provider Rain has withdrawn its statement that it wants to merge with partially state-owned telecoms group Telkom.
Following engagement with the Takeover Regulation Panel (TRP), at the TRP’s instruction, rain hereby withdraws its press release of 11 August 2022, said in a statement on Tuesday.
“As rain, we are pleased with Telkom’s SENS announcement stating that if an offer or formal proposal is received from rain, the board of Telkom will consider it. rain intends to submit a formal non-binding proposal to Telkom in due course,” said Vivian Ngalo
Chief Communications Officer at Rain.
“Further details will be published as appropriate in compliance with the Takeover Regulations.
Also read: GUGU LOURIE: MTN’s battle for Telkom is actually no contest
There are now three entities vying for a lucrative stake in Telkom — MTN, Rain and Toto Consortium — but I suspect two of them will turn out to be damp squibs.
After a public dressing down by the Takeover Regulation Panel (TRP) for announcing a possible R40bn deal without the regulator’s prior approval, Rain, SA’s data-only network operator, said it intends to submit a formal merger proposal to the board of the partial state-owned entity in “due course”.
A day after Rain’s initial statement, “little-known investment firm” Toto Consortium made an offer, valued at R7bn, for the government’s 40.5% stake in Telkom.
