MTN SA, Telkom SA

MTN Group’s talks to buy Telkom SA have stalled following a rival proposal from another telecom company, Rain. Photo: @MTNzaService and @TelkomZA / Twitter

MTN in talks to purchase Telkom as shares soar after the announcement

The second and third-largest telecommunications operators in SA could become one soon as MTN plans to buy Telkom.

MTN SA, Telkom SA

MTN Group’s talks to buy Telkom SA have stalled following a rival proposal from another telecom company, Rain. Photo: @MTNzaService and @TelkomZA / Twitter

MTN is reportedly in talks to buy Telkom in a deal that could combine the second and third-largest telecommunications operators in the country.

How does MTN plan to pay for Telkom?

Reports have revealed that MTN would pay for Telkom either in shares or through a combination of cash and stock, this is according to a statement that was released on Friday, 15 July.

The discussions about the potential sale are currently in their early stage. The carriers stated that there is no certainty about when the transaction will be completed.

Recently, Telkom shares have soared by 15%. This is the most since September 2021. Now the company is valued at almost R20 billion.

Reuters reports that Telkom’s shares jumped nearly 30% since the announcement while MTN went up by 5%.

It seems Telkom’s shares have jumped nearly 30% since the companies announced the plan. Photo: Stock Image / Pixabay

Vodacom ranked best quality network in SA – Cell C, not so much…

Previously, it was reported that a recent report by independent crowdsourced data company Tutela has ranked Vodacom higher than its rival networks MTN, Telkom, and Cell C in relation to quality. 

Tutela aids the mobile industry by gathering useful information relating to mobile infrastructure. This information can then be used by mobile industries to optimise global networks. 

The Mobile Experience Snapshot April 2022 report utilised data based on various criteria. These criteria included mobile signal strength, mobile connection quality, and performance of different mobile apps in different locations.

Tutela categorised basic/core activities which are moderate to intense web browsing. This web-browsing includes social media applications and even standard video streaming. In this category of basic/core activities, Vodacom was the leader with a score of 83.1%. Coming in second best to this was Telkom at 76.5%. Read the full story here.