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Rain proposes merger with Telkom

Rain said the deal would complement the infrastructure and mobile businesses of Telkom with its 4G and 5G businesses.
Rain said the deal would complement the infrastructure and mobile businesses of Telkom with its 4G and 5G businesses.
Image: REUTERS/SIPHIWE SEBEKO

Data network provider Rain said on Thursday it had made a formal request to present the board of Telkom with a merger proposal to combine the two businesses.

Rain said its proposal would be an alternative offer to that made by mobile operator MTN Group, which said last month it was in talks to buy Telkom in a stock or cash-and-shares deal.

A merger with Telkom would create a "5G powerhouse", Rain said, adding that the terms of such a deal, including valuation and structure were yet to be finalised.

Rain said the deal would complement the infrastructure and mobile businesses of Telkom with its 4G and 5G businesses.

"It is a logical alternative to simply selling to MTN and would also be consistent with the pro-competitive policies of Government," the company said in a statement.

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