06 September 2022

South Africa’s data-only network provider Rain will submit a formal non-binding proposal to bigger rival Telkom, a week after retracting a media statement on its merger proposal.

On Thursday August 11, the country’s Takeover Regulation Panel (TRP), a regulatory body, rebuked Rain for issuing a press release detailing its proposed merger with Telkom, saying the announcement was issued without prior approval as required by regulations. The panel requested a retraction from Rain.

“Furthermore, the announcement was issued notwithstanding the TRP’s instructions to Rain that no such announcement should be made without the prior approval of the TRP,” the body said.

After seeking legal advice and engaging with the panel, Rain withdrew the press release. Telkom, which is currently in discussions with the country’s second biggest mobile operator MTN about a possible merger, said if an offer or formal proposal is received from Rain, its board would consider it in accordance with its legal obligations.

Rain’s largest shareholders include investment vehicles owned by billionaire Patrice Motsepe and former banking executive Michael Jordaan.

The operator, which launched in February 2019, began providing data only services using 3000 of its own cell towers and leasing infrastructure from Vodacom and MTN.

In June 2020, Rain announced the addition of 1500 5G standalone towers to be launched in 2021.