In a recent turn of events in the acquisition race of Telkom, MTN has withdrawn from the takeover talks reportedly due to the lack of exclusivity.
Discussions were at an early stage and had not progressed due to due diligence nor had a binding offer been received by the Telkom board of directors.
The Telkom board has a legal and fiduciary duty to consider all bona fide offers.
Statement by Telkom
Following the news of MTN’s withdrawal from the Telkom acquisition race, MTN’s shares were seen falling by 2% while Telkom shares fell 25% now valuing the company at around 18 billion rand ($1 billion).
One of the main causes of the crumbling of the talks can be attributed to the offer by Rain Telecom in August which reportedly stalled the talks between Telkom and MTN.
