Data-only network provider Rain is set to make a formal non-binding offer to larger rival Telkom in due course on Tuesday, August 16, withdrawing a media statement on its merger proposal sent last week.
Customers are served at a branch of South African mobile operator Telkom in Johannesburg, South Africa, March 2, 2022. Reutuers/Siphiwe Sibeko/File Photo
Last Thursday, the Takeover Regulation Commission (TRP), the regulator, faulted a press release detailing the proposed merger with Telkom, saying the announcement was made without prior approval as required by the rules. The panel asked for the rain to be waived.
After seeking legal advice and engaging with the group, Raine said he would withdraw his press release.
Telkom, which is currently in talks with the country’s second-biggest mobile operator MTN about a possible merger, said on Friday that if an offer or a formal offer was received from Rain, its board would consider it in accordance with its legal obligations.
