08 September 2022

MTN Group has entered negotiations to acquire Telkom, in a bid to become the dominant operator in the South African telecommunications market.

The former said the deal will be in shares or a combination of cash and shares, but “discussions are at an early stage and there is no certainty that the transaction will be consummated”.

Both companies made the announcement in statements issued via the Johannesburg Stock Exchange (JSE).

The move comes four months after the release of Telkom’s 2021 annual financial report, in which the company revealed a 1.1% decline in revenue to R42,756m (US$2.5m). This decrease in the company’s turnover was slowed down by the growth of the mobile business, which compensated for the decline of the fixed and IT activities.

The company also said that following the acquisition of new frequencies, it is considering launching 5G.