Data-only network provider Rain has withdrawn its statement that it wants to merge with partially state-owned telecoms group Telkom.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.
“The board of rain accepts responsibility for the information contained in this press release and, to the best of its knowledge and belief, such information is true and this press release does not omit anything likely to affect the importance of the information included in it.”
The data-only network provider’s retraction comes after a rebuke from the Takeover Regulation Panel (TRP) ordering the company to withdraw its statement.
The TRP said it noted the announcement with “grave concern”, and that it was unlawful. Rain has been instructed to retract the announcement.
“The Takeover Regulation Panel has noted, with grave concern, a press announcement issued by Rain proprietary limited (‘Rain’) regarding a potential offer to merge with Telkom on 11 August 2022,” TRP said in a statement to shareholders on the JSE news service.
“We wish to inform the market that the announcement was issued by Rain without the prior approval of the TRP as required in terms of Regulation 117 of the Companies Regulations.”
Last week, Telkom informed investors that has not received an offer or proposal from Rain to merge.
“Telkom notes the media statement by rain titled ‘Rain proposes merger with Telkom. Telkom can confirm that no offer or proposal has been received.”
Last month, MTN and Telkom announced that they were in early negotiations about a deal that would see MTN buy Telkom in return for shares or a combination of cash and shares.
