Telkom shares soar 30% as MTN wants to buy it

Africa’s biggest mobile operator MTN is again looking to buyout Telkom, with it announcing ‘early stage’ plans in a Sens on Friday, which saw Telkom’s share price soaring around 30% in early morning trade.

“Shareholders are advised that MTN and Telkom SA SOC Limited [Telkom] have entered into discussions in relation to MTN acquiring the entire issued share capital of Telkom in return for shares or a combination of cash and shares in MTN,” the telecoms giant said.

“Discussions are at an early stage and there is no certainty that the transaction will be consummated,” added MTN.

Telkom also issued a Sens on the offer.

 

Whether it will be third time lucky for MTN remains to be seen. More specific financial details of the proposed offer are yet to be revealed.

“The transaction, if concluded, may have a material effect on the price of the company’s securities. Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities until a further announcement is made,” MTN said.

* Developing story