According to a Bloomberg report, MTN Group is considering a return to negotiations to acquire its rival, Telkom. Sources familiar with the matter suggest that talks could resume before the end of the year, though a deal is not guaranteed.
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This isn’t the first time MTN has shown interest in Telkom. The company previously walked away from discussions in 2022 after Telkom’s board began talks with a smaller rival, Rain. MTN had expressed a year later that a transaction “would have been good for shareholders of both companies and broader stakeholders.”
Despite Telkom’s CEO, Serame Taukobong, stating that its fibre unit, Openserve, is not for sale, Telkom had previously explored interest from potential investors. Openserve is a significant asset, operating around 170,000 km of fibre networks and standing as the country’s second-largest home fibre provider.
A major complication for any potential deal is the South African government’s 40.5% shareholding in Telkom. Without the government’s support, which was not forthcoming during the last round of talks, a deal would be difficult to finalize.
Following the report, Telkom’s shares surged by over 13% to R55.56 at the close of the market in Johannesburg. Both companies have declined to comment on the speculation.
