Rain’s Telkom merger announcement declared illegal

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Data-only network Rain is taking legal advice over its controversial proposal to merge with telephony group Telkom. M&A TakeoverRegulationPanel

Data-only network Rain is taking legal advice over its controversial proposal to merge with telephony group Telkom.to make a formal request for a merger with Telkom.with MTN, which wants to take over the telephony company.

In a statement yesterday, the TRP says it has noted and expressed “grave” concerns regarding Rain’s potential offer to merge with Telkom. The panel is established in terms of Section 196 of the Companies Act as a juristic person. It reports to the minister of trade, industry and competition. It functions as an organ of state within the public administration, but as an institution outside the public service.

“Accordingly, the publication of the announcement by Rain is unlawful, and Rain has been instructed to retract the announcement. In the circumstances, all parties and the market are advised to disregard the announcement.”

 

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