Vodacom, CIVH deal spooks market, opens Telkom race

For Rain, if the tie-up goes through, the data-only network hopes to create an entity valued at R40 billion. Rain is valued at around R16.67 billion, while Telkom’s market cap is around R24.24 billion.

“Telkom is a perfect candidate. With MTN making another approach, other parties have realised they may also pursue this opportunity to improve their position. Toto Investments is more speculative, looking to expand its investment portfolio in infrastructure and hoping to do it relatively inexpensively.

“Even apart from this, Telkom has been struggling, and becoming part of a larger entity with a larger mobile subscriber base and enterprise-focused services would enhance Telkom’s position in the market,” comments Pater. “With the Vodacom deal with CIVH, the market is clearly changing. The moment someone moves, everyone else will start questioning and reassessing the market. At the moment, everyone is reassessing going forward, and it is known Telkom assets are undervalued and underutilised.”

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Rain “engaging” regulator over order to retract Telkom merger statementRain has not withdrawn its statement of a proposed offer to merge with Telkom after the Takeover Regulation Panel reprimanded the company over its announcement. So how can Rain say they are proposing a merger when, “Telkom can confirm that no offer or proposal has been received from Rain,” “If an offer or formal proposal is received from Rain, the board of Telkom will consider it in accordance with its legal obligations.”
Source: mybroadband - 🏆 11. / 67 Read more »