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Telecommunications group Telkom on Friday denied that it received any offer or proposal from network operator rain surrounding a proposed merger.
Several media outlets reported on Thursday that rain proposed a merger with Telkom.
“Telkom can confirm that no offer or proposal has been received from rain,” the company announced on the Johannesburg Stock Exchange’s Sens on Friday, noting that should an offer or formal proposal be received from rain, it will be considered by the board of Telkom in accordance with its legal obligations.
On Thursday, the Takeover Regulation Panel (TRP) issued a Sens statement ordering rain to retract its statement as it was unlawful and advised the market to disregard the announcement of a proposed merger between Telkom and rain.
“The TRP has noted, with grave concern, a press announcement issued by rain regarding a potential offer to merge with Telkom on August 11. We wish to inform the market that the announcement was issued by rain without the prior approval of the TRP as required in terms of Regulation 117 of the Companies Regulations,” the regulation panel said in the statement.
Telkom has been in talks with telecommunications giant MTN since July 15 regarding MTN acquiring the entire issued share capital of Telkom in return for shares or a combination of cash and shares in MTN.
“Those discussions are continuing and accordingly, shareholders are advised to continue to exercise caution when dealing in Telkom securities,” Telkom reiterated in its statement on Friday.