MTN is said to be considering whether or not to pursue an acquisition of a majority stake in Telkom, as the two South Africa-based operators remain locked in negotiations over a network-sharing agreement.
According to Bloomberg, which cited unnamed sources, MTN has held exploratory discussions in recent months about a possible offer for fixed-line operator Telkom, which also sells mobile services.
Bloomberg noted that MTN has been seeking a transformational deal to challenge rival Vodacom, which in turn is seeking antitrust approval to acquire broadband provider Neotel.
“Telkom is engaging in discussions with a number of industry players to consider how we, as an industry, could operate more efficiently,” spokeswoman Jacqui O’Sullivan told Bloomberg. “As a JSE listed company, we are bound by all relevant JSE disclosure processes and as such, Telkom would follow all necessary processes, if required.”
Telkom and MTN have also been negotiating a separate network-sharing agreement for almost a year. On Thursday, Telkom said it and MTN South Africa remain in discussions regarding the potential extension of their existing roaming agreement to include bilateral roaming and outsourcing of the operation of Telkom’s radio access network.
“The parties will update shareholders as soon as they receive the appropriate legal and regulatory approvals,” the telco added.
Meanwhile Vodacom’s proposed ZAR7 billion (€523 million) takeover of Neotel faces considerable opposition from other rivals, such as South Africa’s third-largest mobile operator Cell C. The company said in January that it planned to “vigorously challenge" the proposed deal, wh ich it said could pose a serious threat to its business if approved by regulators, reported BDLive.
