JUST IN | Rain forced to withdraw Telkom merger statement | Fin24

Data-only network provider Rain has been forced to withdraw its media announcement of a plan to merge with Telkom after the move was condemned by the Takeover Regulation Panel (TRP) as unlawful.

On Thursday last week, Rain released a press release, announcing a proposal to merge with Telkom. But TRP said the media announcement was issued without its approval, as required by law. It demanded that Rain withdraw the announcement. In response, Rain said it would get a legal opinion.

On Tuesday morning, Rain withdrew its press release, but said it will submit a formal proposal to Telkom in due course.

“As Rain we are pleased with Telkom’s SENS [Stock Exchange News Service] announcement stating that if an offer or formal proposal is received from Rain, the board of Telkom will consider it,” the company said in a statement.

READ | Fight over Telkom: Third suitor enters the fray, but even more bidders expected

Last week, Rain said the merger would create a “5G powerhouse”, a strong third player to compete against a “telecommunication duopoly” in South Africa.

But it is competing with MTN, which wants to buy Telkom, as well as black-owned investment firm Toto Consortium, which wants to acquire government’s 40.5% stake in Telkom for around R7 billion.

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