Telkom’s share price gained a whopping 10.13% to R35.66 after it announced yesterday that discussions about a transaction with data network competitor Rain Group Holdings had been halted.
Telkom said in a regulatory notice the discussions for Rain to potentially be acquired by Telkom, in exchange for newly issued shares in Telkom, had terminated.
“After initial discussions, but prior to any due diligence, the parties have decided that a suitable transaction is not possible at this time.”
Telkom said it continued to execute its strategy to unlock value for shareholders and would provide an update on progress in this regard in due course.
Talks of a possible corporate tie-up between Telkom and MTN also came to naught in October last year.
BUSINESS REPORT