The data-only network withdrew its statement last week asking for a formal request to merge with Telkom.
This comes after Rain’s proposal was met with resistance from the Takeover Regulatory Commission (TRP), which said Rain had acted illegally in publishing its proposal.
TRP said it had taken note and expressed “serious” concerns about Rain’s possible merger proposal with Telkom.
He added that Rain’s posting of the ad was illegal and instructed Rain to withdraw the ad.
“Following engagement with the Takeover Regulatory Group, as directed by TRP, Rain is withdrawing its August 11, 2022 press release,” the data-only network said in a statement today.
The company told ITWeb last week that it was seeking “legal advice” after TRP fired its career.
“As Rain, we are pleased with Telkom’s announcement to SENS that if there is an offer or a formal offer from Rain, the Telkom board will consider them.”
Rain says it intends to make a formal non-binding offer to Telkom in due course.
Further details will be released as necessary in accordance with the TRP, it said.
Rain’s announcement comes as Telkom is in talks with MTN, which wants to take over the phone company.
Rain suggested that a merger with Telkom would create a formidable third major player to compete with what is effectively a duopoly in South Africa.
