{"id":615971,"date":"2022-08-11T14:37:15","date_gmt":"2022-08-11T12:37:15","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=615971"},"modified":"2022-08-11T14:37:15","modified_gmt":"2022-08-11T12:37:15","slug":"rain-courts-telkom-with-merger-talk-mybroadband","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/mobile\/615971\/rain-courts-telkom-with-merger-talk-mybroadband\/","title":{"rendered":"Rain courts Telkom with merger talk &#8211; MyBroadband"},"content":{"rendered":"<p>Rain has formally requested to present the Telkom board with a proposal to merge the two companies, <strong><a href=\"https:\/\/mybroadband.co.za\/news\/telecoms\/456153-rain-proposes-merger-with-telkom.html\">MyBroadband reports<\/a><\/strong>.<\/p>\n<p>\u201cAlthough the terms of such a transaction \u2014 such as valuation and structure \u2014 would still need to be agreed, Rain believes there is a compelling business case in combining the businesses,\u201d the company said.<\/p>\n<p>Rain said a merger would create a 5G powerhouse and a strong third player to compete with the Vodacom and MTN \u201ctelco duopoly\u201d.<\/p>\n<p>It said there is a strong business case for a Telkom-Rain merger and that it offers a more pro-competitive alternative than the government selling Telkom to MTN.<\/p>\n<ul>\n<li>You can <strong><a href=\"https:\/\/mybroadband.co.za\/news\/telecoms\/456153-rain-proposes-merger-with-telkom.html\">read the full story on MyBroadband<\/a><\/strong>.<\/li>\n<\/ul>\n<p>MTN advised its shareholders in July that it had entered into discussions to acquire the entire issued share capital of Telkom in return for shares or a combination of cash and shares.<\/p>\n<p>MTN said discussions were at an early stage and there is no certainty that the transaction will be consummated.<\/p>\n<p>\u201cThe transaction, if concluded, may have a material effect on the price of the company\u2019s securities. Accordingly, shareholders are advised to exercise caution when dealing in the Company\u2019s securities until a further announcement is made,\u201d MTN said.<\/p>\n<p>Telkom confirmed the discussions in a separate statement issued to shareholders.<\/p>\n<p>The deal is likely to face intense scrutiny from the Competition Commission and other regulators given the size of the two companies and their dominance in the sector.<\/p>\n<p>MTN currently has 34.5 million subscribers, making it the second largest mobile operator behind Vodacom. Telkom has 16.9 million mobile subscribers.\\<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/mobile\/615685\/mtn-reports-earnings-jump-amid-strong-customer-growth\/\" rel=\"bookmark\">MTN reports earnings jump amid strong customer growth<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rain has formally requested to present the Telkom board with a proposal to merge the two companies, MyBroadband reports.<\/p>\n","protected":false},"author":10,"featured_media":250081,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[26,11939,65],"class_list":["post-615971","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mobile","tag-headline","tag-rain","tag-telkom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/615971","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=615971"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/615971\/revisions"}],"predecessor-version":[{"id":615975,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/615971\/revisions\/615975"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/250081"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=615971"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=615971"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=615971"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}