MTN Group Limited Talks have stalled following rival proposal from other telecom company according to the research done.
MTN is yet to decided to walk away from the deal though negotiations about price and other terms have been halted for the time being. Concerned individuals said, while the discussions are confidential, they do not want to be identified. Telkom shares plunged at about 16% since April 2020, and traded 10% lower as of 11:12 a.m. in Johannesburg which values the company at over 22 billion rand ($1.2 billion).
Information reaching us states that Telkom received a method from Rain Group Holdings Pty Limited. After which, MTN, Africa’s largest wireless operator, stepped back creating a skeptical proposal. Rain had offered to sell itself to Telkom, which is known to be partially owned by the South African government, for shares exchange. Telkom A clears position on the Rain offer with Telkom will restart the deal.
However, a representative for MTN has refused to comment on the proposal still under the consideration of both parties, and that shareholders should be cautious.
MTN Being Skeptical On Walking Away From The Deal
Negotiations about price and other terms have been halted for the time being, though MTN hasn’t decided to walk away from the deal, the people said, asking not to be identified because the discussions are confidential.
Following the statistics, Telkom shares plunged as much as 16%, the most since April 2020, and traded 10% lower as of 11:12 a.m. in Johannesburg. That values the company at about 22 billion rand ($1.2 billion). MTN was little changed, having pared earlier gains.
MTN, Africa’s largest wireless operator, stepped back after Telkom received an approach from Rain Group Holdings Pty Ltd., creating uncertainty about its proposal, the people said. Rain said it had offered to sell itself to Telkom, which is partially owned by the South African government, in exchange for shares.