MTN seeks to expand with potential Telkom takeover

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MTN and Telkom Talks
(Picture: Radio 786 / File)

Africa’s largest mobile operator MTN has made another bid to buy telecommunications company Telkom.

The companies have confirmed that talks are being held about a potential takeover. However, the talks are still in their early stages.

MTN is seeking to acquire the entire share capital of Telkom in return for shares or a combination of cash and shares in the mobile operator.

Telkom is already majority-privatised. Government only has a 39% stake in Telkom and the state-owned entity the Public Investment Corporation (PIC) has around a 13% share.

It’s believed for any deal to go-ahead, there would have to be buy in from government and the competition watchdog would need to give approval.

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