September 30, 2022

South African network provider rains to submit merger proposal to Telkom in due time

JOHANNESBURG, August 16 (Reuters)South African data-only network provider rain intends to submit a formal non-binding proposal to its biggest rival Telkom TKGJ.J in due time, he said on Tuesday, after withdrawing a statement to the media about his merger proposal sent last week.

Last Thursday, the country’s Takeover Regulation Panel (TRP), a regulatory body, criticized the release of a press release detailing its proposed merger with Telkom, saying the announcement was issued without prior approval, as the requires regulation. The panel asked for a retraction from Rain.

After seeking legal advice and speaking to the panel, Rain said he was withdrawing his press release.

On Friday, Telkom, which is currently in discussions with the country’s second largest mobile operator, MTN MTNJ.J about a possible merger, said that if a formal offer or proposal is received out of the blue, its board of directors would consider it in accordance with its legal obligations.

(Reporting by Nqobile Dludla; ​​Editing by Promit Mukherjee and Jason Neely)

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